Many LA homes have re­gained value

Zil­low re­ports that there is no na­tion­wide hous­ing bub­ble, or sub­se­quent bust, to be con­cerned with

The Signal - - REAL ESTATE NEWS - By Sig­nal Staff

Nearly four in ten homes, 37.9 per­cent, in Greater Los An­ge­les are now worth more than they were at the peak of the real es­tate bub­ble.

That put Los An­ge­les in the mid­dle of the pack, rank­ing 19th among the largest 41 mar­kets in the United States.

The find­ing is based on re­search con­ducted by Zil­low, the Seat­tle­based on­line real es­tate and rental mar­ket.

Na­tion­ally, al­most half (48.9 per­cent) of all homes na­tion­wide are worth as much or more than they were in April 2007, just be­fore the na­tional mar­ket turned south head­ing into what be­came the Great Re­ces­sion.

San Jose is one of seven metro ar­eas show­ing the strong­est re­cov­ery, with more than 90 per­cent of homes have ex­ceeded their pre-re­ces­sion peak val­ues.

The vast ma­jor­ity of homes there and in Den­ver, Dal­las, Nashville, Port­land, Ore., and Raleigh, N.C., are now worth more than they were roughly a decade ago.

At the other end of the scale, less than one per­cent of homes in Las Ve­gas are back at their pre-re­ces­sion peak, re­flect­ing how in­flated hous­ing prices were be­fore the bub­ble burst.

River­side, where just 2.9 per­cent of homes have bounced back from prior peaks, is among other mar­kets where val­ues re­main lower al­most across the board. Other lag­ging mar­kets in­clude Or­lando, (3.5 per­cent); Hart­ford, Conn. (4.5 per­cent); and Phoenix (5.1 per­cent).

The find­ings are based on Zil­low’s es­ti­mated mar­ket value, which it calls a Zes­ti­mate, com­puted us­ing a pro­pri­etary for­mula. The com­pany has data on 100 mil­lion homes, and its es­ti­mates have a me­dian er­ror rate of 4.3 per­cent. This means half of the home val­ues in the area are closer than the er­ror per­cent­age.

Other find­ings from Zil­low’s anal­y­sis of pre­re­ces­sion home prices com­pared to a decade later in­clude:

• There is no na­tion­wide hous­ing bub­ble, or sub­se­quent bust, to be overly con­cerned with, though some re­gional hous­ing mar­kets and some mar­ket sub-seg­ments are clearly ex­posed to more risk than oth­ers.

• It is wise to be cau­tious but there is clearly home buy­ing de­mand that is cur­rently go­ing un­met, par­tic­u­larly at af­ford­able price points.

• Though the eco­nomic cli­mate can al­ways shift – some­times sud­denly – a na­tional re­ces­sion is not im­mi­nent on the near hori­zon.

Tr­ish Gal­loway/The Sig­nal

A Stevenson Ranch cul-de-sac as viewed from Richard Rioux Park.

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