American Home Prices Are Still Way Off Of Their Highs | Katonah Real Estate

For all the promising data  we’ve seen about the so-called “housing recovery,” it’s important to realize it  is just that — a recovery.

Though some are calling the spike a housing bubble 2.0, home prices are  still way off their 2006 highs (which is good, since that was a bubble of epic  proportion).

“Overall, the recovery has  been rather uneven, with states that enjoyed the largest home price increases  before the recession still far from their prior peaks and states that missed the  housing boom closer to recovering their losses,” writes  CoreLogic’s Kathryn Dobbyn in a  new report.

CNBC’s  Diana Olick highlights this chart from CoreLogic:

home price appreciationCoreLogic


Dobbyn notes that Arizona, which has recently seen huge home price  appreciation, is still 45.6  percent from the peak it hit 7 years ago. Even if the state maintains its  current appreciation rate, it would still take another 35 months for Arizona to  get back to its highs.

“Speculating on a new bubble is likely premature,”  concludes Dobbyn.

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