It's now been a full two years since residential real estate prices stopped slipping backward and began a recovery. The most recent Case-Shiller index of 20 cities shows home prices rising at the fastest rate in nine years. However, by and far most remain at levels below what they were before the recession. The fact is that nationally, home prices average 13.5% below their high values before the real estate market bust.
It will be some time before these house values fully recover. While 2013 saw average price increases of 10%, prices are only expected to rise an average of 3% to 5% during 2014. Another fact is that not all regions of the country are playing by the same rules. Texas in particular has realized and continues to see substantial increases in residential house prices.
Some cities are recovering faster than others are. Here are the top seven major cities that have recovered the most.
We are getting deep into the spring buying and selling season. While a recovery is well under way, it is not yet complete. Data over the next couple of months will give us a clearer view of what to expect for the remainder of the year.
After a decade that saw real estate prices reach historic peeks and then go over a cliff that led to record foreclosures and loss in values, 2014 could well be the transitional year into a stable real estate market. Although rapidly rising prices in 2013 were refreshing compared to the wacky years that preceded it, with home prices increasing at an average of 10%, it was not a stable real estate market. The current estimate of a 3% to 5% price increase for 2014 could be the best thing for us to return to a stable and more predictable real estate market.
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Author bio: Brian Kline has been investing in real estate for more than 30 years and writing about real estate investing for seven years. He also draws upon 25 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest in the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.