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Markets Hit Hardest by Foreclosure Crisis Recovered Faster in Past 12 Months

June 3rd, 2014 – in market trends finance

The Real Estate Markets that were struck the hardest by the housing collapse in the last five years showed some of the strongest growth in the past 12 months, while growth in other markets began to slow, according to a new report by ZipRealty.

“Those markets were hit really hard by the foreclosure crisis,” ZipRealty spokeswoman Stacey Corso said. “Over the past two or three years, those price increase have been in recovery because home-buying consumers are back in the market. The levels of distress are all down, significantly.”

The online residential Real Estate brokerage and technology and marketing provider measured the 24 metropolitan areas in which it currently operates for the report. From April 212 to April 2013, the home price growth increased in the metro areas increased at a pace of 16.4 percent.

From then through April of this year, home price growth increased only 6.1 percent. That’s still encouraging, but not as much. The areas that bucked the trend included those hit hardest by the recession. Sacramento’s median home price grew by 20 percent, Las Vegas’ by 17 percent, Los Angeles’ and Orlando’s by 13 percent. In Chicago, median home prices increased by 10 percent. And in Portland, Ore., it rose by 9 percent.

The median sales price in ZipRealty’s 24 metros stood at $277,627 in April 2014.

“Overall, the supply of for-sale housing inventory in the markets analyzed by ZipRealty is up 1 percent,” ZipRealty CEO Lanny Baker said in a news release.

The homes available for purchase for places like Phoenix (55 percent more than the previous 12 months), Sacramento (42 percent) and San Diego (38 percent) were also a factor in the median home price increasing.

“It’s because investors were really active in those markets last year and they’ve left those markets for secondary markets,” Corso said. “This is encouraging news, considering that housing inventory in these western markets was so much tighter last year and made things difficult for home buyers who faced few options in a red-hot seller's market,” Baker said in a prepared statement.

Author: Roman Gokhman