The housing market on the West Coast has seen the biggest price swings over the past decade. This, according to a study by Owners.com, which looked at the top 2o markets to have rebounded the most with the 10 years following the 2008 housing crash.
For the study, Owners.com built a monthly housing price index using median historical sale values for single-family homes by metropolitan statistical area (MSA), accounting for changes in housing stock and seasonality. Utilizing this index, it analyzed total gains from the post-crash minimum after January 2009 to the post-crash peak (any moment in time up to February 2018). The comparison was based on the average price per square foot in metropolitan statistical areas (MSAs).
The study found that markets on the West Coast had seen the biggest rebound over the past decade, led by California cities that have seen the maximum swings from a post-crisis trough to a post-crisis peak. "This is likely due to market desirability and increased competition for a limited supply in recent years," the study indicated.
“Since the housing crisis, most cities around the country, and especially those on the West Coast, are seeing increased competition for a limited supply, which has created a favorable situation for sellers and a competitive market for homebuyers,” said Kevin Karty, VP, Enterprise Data for Owners.com.
Topping the list were the Golden State cities of Modesto and Merced, where prices rose from $85 and $73 per square foot in November 2011 and April 2012 to $182 and $156 per square foot respectively by February 2018. Coming in third was Reno, Nevada, which saw a rise from $97 per square foot in January 2012 to $204 by October 2017. Vallejo-Fairfield and Stockton-Lodi in California rounded off the top five cities to have rebounded since the crisis.
The study indicated that on average, home prices in the top 10 markets increased 103 percent from their lowest price since January 2009 to their post-crash peak price; in the top 20 markets, home prices increased 93.9 percent.
Florida and Michigan were the only two east coast states to make it to the top 20 markets.