Real estate professionals know better than anyone that the Great Recession significantly effected the real estate industry. So where did the proverbial burst of the “housing bubble” leave your local market? Is it still gasping for air or breathing a sigh of relief? To help you answer this question we have rolled out the red carpet for the release of the Homes.com Rebound Report.
What is the Rebound Report?
For most U.S. markets the housing boom of the early 2000’s represented a time of prosperity with increased demand and skyrocketing home values. Soon after came the time that we now know as the housing bust, which consisted of sharp decreases in demand and plummeting home values that contributed to the downward spiral of the nation’s economy. The Homes.com Rebound Report is used to measure the progression of the housing market since this grim time in the real estate industry.
What Does the Rebound Report Measure?
As a deeper analysis of the comprehensive Homes.com Local Market Index, the Rebound Report provides real estate professionals with a play-by-play to your market’s road to recovery. Focusing on the period of 2005 forward, the Rebound Report identifies the top 10 and bottom 10 markets in regards to their “rebound” rate. This rate identifies each markets peaks and troughs to isolate the impacts of the recession. Values of 100% or higher for a market means that the area has fully recovered from any price decline as a result of the housing bust.
How Can a Real Estate Professional Benefit From the Rebound Report?
- Use it as an illustration of what markets are thriving and which markets are diving.
- Determine how your market’s recovery compares to other areas across the U.S.
- Inform clients that plan on relocating what they might expect in terms of buying a home there and its potential resale value based on how the area is or is not recovering.
- If your area has shown little signs of recovery, pinpoint economic conditions that might contribute to the slow progress. Determine alternate strategies that might enhance your business like working with investors to purchase distressed properties, or managing properties for owners that opt to rent their home.
Summary of the Rebound Report:
- Nine of the top 100 markets have completely rebounded to their peak price levels.
- Some markets have increased as much as 200 percent over the decline amount
- Real estate markets seeing the greatest recovery are located in the South and Southwest
- Cities that bottomed out the worst during the peak of the bubble’s burst like Las Vegas, New York and Orlando, are recovering at slow pace.
Top Performing Markets:
Everything’s bigger in Texas! Even their rebound rates. In fact, six of the top 10 recovering markets were major metro cities in the Longhorn state. Oklahoma City and Tulsa, Oklahoma have fully recovered to 192 and 173 percent respectively. Little Rock, Ark. wasn’t so little with a big recovery at nearly 107%! Louisiana’s capital city of Baton Rouge is almost completely recovered, with a 99% recovery which has grown over 4% in the past month.
Worst Performing Markets:
Providence, New Bedford-Fall River, R.I.-Mass and New Haven-Milford, Conn. are anchoring this list with a mere 5.25 and 6.27 percent respectively. Unfortunately, for a few largo metros like “Sin City” and the “Big Apple” have seen less than 10 percent recovery. Rounding out the bottom 10 is Bridgeport-Stamford-Norwalk, Conn. with a 10.04 percent recovery.
Has your local area experienced a sizable rebound or still underground? Share your insight with us on Facebook! Checkout the full Press Release and Rebound Report to see how other markets are bouncing back. Be sure to download the Homes.com Local Market Index Report and other comprehensive market reports to receive even more information about the recovery of our nation’s housing market.