Since the housing crash and recession in 2008, some metro areas have made full recoveries, while others continue to struggle. Recently released data reports that 37 major metropolitan statistical areas (MSAs) that have not yet recovered peak values reached during the previous boom.
Utilizing the Federal Housing and Finance Agency’s Home Price Index, HSH.com recently released a Q3 report on the top and bottom 10 MSAs that have recovered the most and the least.
The report notes that it is important to consider that although the 37 major MSAs still remain the furthest from their boom-year price peaks, they have experienced significant price recoveries since hitting their bottom values.
However, home prices in some areas—Las Vegas for example—are so inflated that even when they return to a “normal” value they may still be well below their previous price peak, which is causing recovery to happen at a much slower pace.
Three California areas rank in the top 10 MSAs with the slowest recovery, with Bakersfield, California ranking No. 1. Following suit is Las Vegas, Nevada, Stockton-Lodi, California, Camden, New Jersey, New Haven-Milford, Connecticut, Cape Coral-Fort Myers, Florida, Fresno, California, Bridgeport-Stamford-Norwalk, Connecticut, Tucson, Arizona, and Elgin, Illinois, respectively.
Though the metros in the top 10 most recovered have not changed since last quarter, two switched positions—for now. The San Francisco metro area moved up to No. 4, and the Houston metro took its previous spot at No. 6. But the report notes that the positions may fluctuate as the Houston area recovers from recent Hurricanes.
Although home prices continue their rise, only one market managed to join the "fully recovered" group this quarter—the Cleveland-Elivra, Ohio MSA—with prices now 1.04 percent above the market's previous price peak, a value recovery process that took over 11 years to complete.
El Paso, Texas is the only metro in line to join the “nearly recovered” group, meaning the next MSA to hit “fully recovered” potentially by next quarter.
Three other metros are close as well, including Tampa-St. Petersburg-Clearwater, Florida, Nassau County-Suffolk County, New York, and New York-Jersey City-White Plains, New York-New Jersey metro areas could make the leap in the next period. The report notes these MSAs are more likely to make the leap in the next couple of quarters.
Find out where other metros ranked by clicking here.