San Jose, California, ranks No. 1 on LendingTree’s list.Getty
Here are the numbers on the country’s housing market recovery since 2009. LendingTree recently crunched the data on 50 top metros around the country analyzing the impact of the housing market recovery since 2009. LendingTree also linked income and unemployment rates.
The results may surprise you. “The most significant thing is the extent of how much price appreciation has outpaced income growth in some areas,” explains Tendayi Kapfidze, chief economist at LendingTree.
According to LendingTree, average median home values have increased by nearly $50,000 in the 50 largest metros across the country since 2009. It’s no surprise the top three ranked metros showing the strongest recovery are in California. These include San Jose, San Francisco, and Los Angeles. High paying tech jobs in San Jose and San Francisco propelled price appreciation. Each of the three areas mentioned saw an average median value increase of $243,600.
Here’s just how much median home values have increased in the top five metro markets since 2009. In San Jose, near the heart of Silicon Valley, the 2009 median home value was $638,300 rising to an estimated 2019 median value of $1,005,886. San Francisco numbers dip only slightly. In 2009 that median value was $591,600. This year’s estimated median climbs to $860,410.
Southern California had major appreciation, especially in the Los Angeles metro area with 2019 estimated median value at $659,595, up from $463,300 in 2009. San Diego holds the number four spot with a 2009 median value of $417,700. Today that number is $611,999. Coming in at five is Denver where the 2019 estimated median value is $384,088.
Hartford ranks last on the listGetty
Four metros where median housing values fell an average of $6,700 since 2009 according to LendingTree’s study are Hartford, Connecticut, Chicago, Illinois, Virginia Beach, Virginia and Baltimore, Maryland. Kapfidze attributed this to out-of-state-migration and declining high-paying job opportunities. Here’s a closer look at the bottom two metros on the list. Hartford holds the last place where the median price in 2009 was $259,700. Prices there are estimated to rise only $7,196 to $266,896 this year. Chicago is next to the bottom with an estimated median value of $257,380 for 2019. That’s up from $249,600 in 2009.
Kapfidze’s takeaway really isn’t a surprise. “We’re likely to see home price appreciation slow because it’s run so far ahead of income growth. Income is really the anchor to home prices and the gap has just gotten too wide.
Hopefully, the market is returning to a saner environment where prices rise annually, yet not with double-digit increases that keep buyers out and lowers the affordability factor.