Charleston area manages moderate two-year rebound from housing slump, according to online real estate researcher
Greater Charleston's frothy home prices at the peak of the market presented it with a steeper fall when the bubble burst. But prices have rallied steadily since bottoming out in late 2011.
That's according to the most recent, November 2013 figures from the Homes.com Rebound Report for the nation's top 300 metro markets.
The Charleston-North Charleston-Summerville area, which ranks No. 78 in population, reached its peak home values in April 2007, based on the Homes.com Local Market Index.
From its 165.53 top - the highest in the state - metro Charleston's housing prices spiraled down to 131.20 (still first among S.C. metro areas) as of November 2011. Looked at another way, a home worth $165,530 in spring 2007 would be valued at $131,200 four-and-a-half years later.
In the two years from late 2011 to November 2013, the Charleston area index rose to 147.08, trailing only Florence in value.
Based on Homes.com's "rebound" formula, Lowcountry prices have rallied 46.28 percent since the "trough" two years ago. So a house worth $200,000 in fall 2011 would have recouped not quite half of its April 2007 value by this past November.
The percentage gain ranks second lowest in South Carolina, ahead of only Myrtle Beach's 34.99 percent increase. The strongest rebound has taken place in Florence, with a 151.21 percent surge from its bottom in April 2007 to its top in November.
According to Homes.com, highlights in its rebound report include:
- Close to 30 percent, or 87 metro areas, have rebounded 100 percent, "indicating a complete recovery in these markets." South Carolina markets that have experienced a full rebound consist of Florence, Greenville-Mauldin-Easley, Spartanburg and Anderson.
- Midsize markets nationwide are recovering the best overall, with 59 of the 87 fully recovered metro areas.
- Three new markets to achieve a full rebound are Greensboro-High Point, N.C; Ogden-Clearfield, Utah; and Peoria, Ill.
. Among non-recovered markets, 161 show more than a 50 percent rebound.
Homes.com says its Rebound Report "tracks how far each market has recovered from its peak-to-trough decline in index value attributable to the Great Recession - a recently marked global economic decline that correlated with the bursting of the U.S. housing bubble."
The rebound figures complement the Homes.com Local Market Index, released in late January. Both reports showed "continuing recovery for the eighth consecutive month."
In the local market index, Rocky Mount, N.C., saw the largest gain, with a 3.05 index point jump, according to Homes.com.
For the sixth consecutive month, Anchorage, Alaska; and Hilo, Hawaii; remained the top two performing markets on a year-over-year basis. Anchorage has risen nearly 20 percent from a year earlier and Hilo is up more than 15 percent.
According to Homes.com, the West continues to dominate the midsize markets.
"This year will continue to bring good news, with numerous markets providing opportunities for consumers to take advantage of improvements as they consider buying and selling decisions," says Brock MacLean, executive vice president of Homes.com.
"Markets in the West and 'heartland' area continue to lead the pack, but encouraging signs in the Southeast and Northeast prove the market continues the steady climb towards recovery," he says.
"With the gains we continue to see in local markets year to date, we should close out 2013 with year over year price gains nearing 2005 levels."
The Local Market Index showed year-over-year increases in all of the top 300 markets and monthly hikes in 235 metro areas. Honolulu remains the top gaining market on a year-over-year basis, with a 28.23 index point or 12.62 percent increase.
Homes.com is a division of Dominion Enterprises, a marketing services and publishing company headquartered in Norfolk, Va.
Reach Jim Parker at 937-5542 or firstname.lastname@example.org.