The recent rebound in residential real estate investment and housing prices is proving the old adage, ""Real estate is local."" While national indexes paint a picture of a recovering housing market, a closer look reveals quite a wide range of activity across the country.[IMAGE]
In general, those markets that fared worst during the housing downturn are the ones gaining the most from the recovery, according to ""CoreLogic's"":http://www.corelogic.com/ MarketPulse report released Tuesday.
In the Pacific and Mountain divisions, prices declined 41 percent and 39 percent, respectively, from their peaks, according to CoreLogic. Prices took 70 months to bottom out in the Pacific Division and 66 months to reach bottom in the Mountain Division.[COLUMN_BREAK]
However, the Pacific Division has been on the rebound for 12 months, during which time prices have gained 5 percentage points. The Mountain Division has been improving for 14 months, allowing prices to gain 9 percentage points.
In contrast, the West South Central and East South Central divisions gave up less ground during the housing crisis but and are now gaining less. They also took less time to bottom out--51 months and 57 months, respectively compared to the 70 and 66 months in the Pacific and Mountain divisions.
Prices in the West South Central Division, which includes Texas, declined only 9 percent during the recession and have gained back just 3 percent. Prices in the East South Central Division declined 13 percent and have regained just 1 percent so far, according to CoreLogic.
The nation ""recorded"":http://dsnews.comarticles/march-home-prices-accelerate-post-biggest-annual-gain-in-7-years-2013-05-07 a 10.5 percent year-over-year price increase in March. A few Western states topped the list of price appreciation for the month. Nevada experienced a 22.2 percent increase; California experienced a 17.2 percent increase, and Arizona posted a 16.8 percent increase.
""While home building and real estate markets are finally changing for the better, some things remain the same: Real estate is still a local phenomenon,"" CoreLogic stated in its report.