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Luxury Home Recovery Update

By
Real Estate Attorney with http://www.medicalandspaconsulting.com
As a follow up to my blog post about luxury home recovery, here is a compilation of the cities that are recovering faster than most. I have to say that I am surprised / shocked at some of the cities…but here they are!! Some markets are experiencing more progress than others. RealtyTrac recently released its first Housing Market Recovery Index, which reveals the metro cities leading the housing recovery.
The index showed that upstate New York, southwest Florida, and Northern California’s Bay Area are leaders in the housing recovery. On the other hand, markets in northern Maryland, southeast Pennsylvania, and downstate Illinois are still showing signs of lagging the furthest behind in the recovery, according to RealtyTrac.
“The U.S. housing market has clearly shifted to recovery mode over the past 18 months, with home prices consistently rising and foreclosures falling closer to pre-housing bubble levels,” said Daren Blomquist, vice president at RealtyTrac.
For its Housing Market Recovery Index, RealtyTrac used seven different measures to evaluate the 100 largest metro’s recovery: the unemployment rate, underwater loan percentage, foreclosure activity percentage change from peak, distressed sales, investor share, cash purchases, and median home price change from the bottom. The following are the metros that ranked highest on its Housing Market
 
Recovery Index:
Rochester, N.Y.
Median home price change from trough: 93%
Unemployment rate: 7%
Underwater home owners: 7%
Cape Coral-Fort Myers, Fla.
Median home price change from trough: 82%
Unemployment rate: 7.4%
Underwater home owners: 42%
Albany-Schenectady-Troy, N.Y.
Median home price change from trough: 44%
Unemployment rate: 6.4%
Underwater home owners: 9%
San Jose-Sunnyvale-Santa Clara, Calif.
Median home price change from trough: 70%
Unemployment rate: 6.9%
Underwater home owners: 9%
San Francisco-Oakland-Fremont, Calif.
Median home price change from trough: 96%
Unemployment rate: 6.5%
Underwater home owners: 17%
Birmingham-Hoover, Ala.
Median home price change from trough: 58%
Unemployment rate: 5.9%
Underwater home owners: 15%
Atlanta-Sandy Springs-Marietta, Ga.
Median home price change from trough: 57%
Unemployment rate: 8.9%
 
Underwater home owners: 36%
 
Paddy Deighan J.D. Ph.D

Comments (3)

Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Recovery to some means that the price will return to what it was before the slide of the market....and are not realistic about their starting point for recovery.

May 24, 2014 10:09 PM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Paddy, for me, recovery is movement in a positive direction...we probably will get back to the way things were before the turn down if given time, but I don't think '06 was very real or, obviously, sustainable....who wants to recover to that!

May 25, 2014 07:17 AM
Michael Green
Tampa, FL

In the Tampa Bay area we are experiencing a reasonable recovery, but we still face sellers that expect the '06 level of home values. It is very sad that the Seller of this Lutz luxury home is now loosing his home to the bank because he turned down reasonble offers in an attempt to capture twice the market value of the home. This example is what we are continuing to deal with in the Tampa Bay area as we must educate our Sellers on the market "recovery."

Jul 18, 2014 01:54 AM