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The home price report released by mortgage technology company FNC Inc. reveals home values appreciating at their most rapid pace nationwide since October 2014, but New York City is lagging behind quite a few markets. NYC property prices grew 4 percent last year, landing lower on the list of highest appreciating markets in 2015, but it was one of the few to grow in December with 0.2 percent home value growth.
U.S. price gains: inclusive market is escalating
The average U.S. home price grew 6.2 percent year-over-year. At the beginning of 2015, prices rose 4.7 percent year-over-year, and the increase proves 2015 was a positive growth year for the real estate market overall. Property values also grew 6 percent in the fourth quarter across the country.
“Nationwide, average property value is up 28 percent since early 2012, although there is considerable variation in the pace of the recovery across the country,” said housing economist and Director of Research at FNC, Yanling Mayer.
“When benchmarked against the level attained in summer 2007 – when U.S. home prices began a freefall – current price level is about 13% below the peak run-up,” Mayer said.
The markets featuring considerable shifts, according to Mayer and FNC, include Denver, San Antonio, Houston and Dallas. Compared to mid-2007, these metros have made “significant strides” with property value growth outpacing other markets, including New York City.
NYC: slight month-over-month gains, slow yearly progress
New York City fell toward the bottom of the list with just 4 percent year-over-year growth, but some home value appreciation in December – when the market typically cools – is a positive sign for NYC homeowners and agents. Many of the markets featuring high annual growth slowed at the end of 2015 while the Big Apple remained stable, which supports the steady yet ascending trend NYC knows and continues to uphold.
Portland is the top emerging market with 14.2 percent year-over-year property price growth. Portland is also in its ninth month of continuous double-digit annual growth. Denver increased 13 percent and is in 11 months of consecutive double-digit annual growth. San Francisco made 12.6 percent home price growth. Las Vegas, Miami, Sacramento, Phoenix and Cincinnati all had over 10 percent year-over-year home value appreciation. Los Angeles had 7.2 percent home value growth last year, while D.C., Boston and Chicago grew 6.3, 6.2 and 5.6 percent, respectively.
New York City now compared to 2012 and 2007
According to the FNC Index, NYC’s pace of recovery is at 12.2 percent since 2012. Since 2007, New York City home prices have dropped 22.3 percent below peak-to-date value.
For comparison, Las Vegas home values recovered by 79.8 percent since 2012 — meaning home prices have appreciated nearly 80 percent in the last four years combined. Phoenix has also experienced high home value growth since 2012 at 79.5 percent, followed by Sacramento at 71.4 percent and San Francisco at 67.9 percent. Miami had 56.7 percent four-year growth, Boston came in with 37.7 percent and Washington D.C. with 20.9 percent. Chicago outpaced New York slightly with 17.2 percent home value growth since 2012.
Since 2007, the market with the best peak-to-date home values is Denver, where home prices are actually almost 30 percent higher than they were eight and a half years ago. San Antonio is second with 18.7 percent, followed by Houston (18.3 percent), Dallas (18.3 percent) and Nashville (12.5 percent).
