Price growth varied widely by region. On a monthly basis, increases ranged from flat growth in the Middle Atlantic division to a 1.1% gain in the East South Central division. Over the past year, prices declined in the Pacific division, down 0.4%, while the East North Central region posted the strongest annual increase at 5.1%, the FHFA said. Several regions continued to show cooling compared with a year earlier.
Generally speaking, housing markets where inventory (i.e., active listings) has returned to pre-pandemic 2019 levels have experienced weaker home price growth (or outright declines) over the past 36 months. Conversely, housing markets where inventory remains far below pre-pandemic 2019 levels have, generally speaking, experienced more resilient home price growth over the past 36 months. Of the 50 largest metro area housing markets, 21 major metros now have more homes for sale than at the same point in 2019.
In the wake of the Great Recession, which lasted from December 2007 to June 2009, home prices fell precipitously, bottoming out in February 2011 at 25% lower than the pre-recession high reported in July 2006, according to the Case-Shiller index. Plunging home values left millions of Americans hesitant to invest in a home and led to a sharp decline in the number of skilled laborers in the homebuilding sector.
