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17
THE EVOLUTION OF THE
WEST COAST HOUSING
MARKET
e housing market on the West Coast has
seen the biggest price swings over the past decade.
is, according to a study by Owners.com, which
looked at the top 20 markets to have rebounded
the most in the 10 years following the 2008
housing crash.
For the study, Owners.com built a monthly
housing-price index using median historical sale
values for single-family homes by metropolitan
statistical area (MSA), accounting for changes
in housing stock and seasonality. Utilizing this
index, it analyzed total gains from the post-
crash minimum after January 2009 to the post-
crash peak (any moment in time up to February
2018). e comparison was based on the average
price per square foot MSAs.
e study found that markets on the West
Coast saw the biggest rebound over the past
decade, led by California cities that have seen
the maximum swings from a post-crisis trough
to a post-crisis peak. "is is likely due to
market desirability and increased competition
for a limited supply in recent years," the study
indicated.
"Since the housing crisis, most cities around
the country, and especially those on the West
Coast, are seeing increased competition for a
limited supply, which has created a favorable
situation for sellers and a competitive market for
homebuyers," said Kevin Karty, VP, Enterprise
Data for Owners.com.
Topping the list were the Golden State cities
of Modesto and Merced, where prices rose
from their lows of $85 and $73 per square foot in
November 2011 and April 2012 to $182 and $156
per square foot, respectively by February 2018.
Coming in third was Reno, Nevada, which saw
a rise from $97 per square foot in January 2012
to $204 by October 2017. California's Vallejo-
Fairfield and Stockton-Lodi rounded off the top
five cities to have rebounded postcrisis.
e study indicated that on average, home
prices in the top 10 markets increased 103
percent from their lowest price since January
2009 to their postcrash peak price; in the top 20
markets, home prices increased 93.9 percent.
Florida and Michigan were the only two
East Coast states to be in the top 20 markets.
