Back in the 3rd quarter of 2005, the national median home price peaked at $227,633. Nine years later, the national median was $216,367 in the 3rd quarter of 2014, a decline of 4.9%. While the national median sale price remains below the boom-period peak, a majority of local markets have outpaced the national average over this period.
As depicted above, markets in North Dakota, largely due to a boom in oil production surged with the median price in Bismarck up 87.2% over this period. Markets in Texas have done well and six registered in the top 10. Metro areas in the Midwest, the Mid South, and the Northwest gained over this period. In total, 87 of the metro areas tracked saw an increase of the median home price in the nine years since the national market peak.
At the other end of the spectrum were markets concentrated in the boom and bust states like Southern California, Arizona, Nevada, and Florida. Markets in New England have sputtered in their recovery, partially due to the judicial process for handing foreclosures used in these states. The clearing process for foreclosures takes longer and the overhang of distressed properties weighs on the median price, though it may not be representative of submarkets in these areas.
Curious how your market has performed? To find out more about your market or others, see the Local Market Reports for the 3rd quarter.