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» VISIT US ONLINE @ DSNEWS.COM 15 HOUSING RECOVERY HAS BEEN SLIGHT AND ERRATIC For all the talk of postrecession recovery, rising prices, and a brisk sellers' market, barely one-third of homes in the U.S. have values surpassing their precrash peaks. But even that recovery is far from even, according to a report released by Trulia on May 3. Trulia Chief Economist Ralph McLaughlin wrote that only 34.2 percent of homes nationally have seen their values surpass 2006 numbers. But that percentage belies wildly uneven pockets of recovery. Of large U.S. metros, some—such as Denver, San Francisco, Honolulu, and Dallas—have seen more than 90 percent of homes recover fully and surpass 2006 peaks. But then there are metros like Las Vegas and Tucson where fewer than 3 percent of homes have passed prerecession numbers. Recovery hit its postrecession nadir in 2012, when that April, just 7 percent of homes were worth more than they were half a decade earlier. Since then, McLaughlin wrote, "the recovery has been slow and steady, climbing by about 5 to 6 percentage points each year. At this rate, we won't see 100 percent of homes reach their prerecession peak until approximately September 2025." According to Trulia, many of the metros that have recovered well were in the West, South, and Midwest, where the housing crash had less impact on values to begin with. Metros like Nashville, Fort Worth, Wichita, Tulsa, and Colorado Springs survived the recession fairly well overall. e markets that took the hardest hits in the recession, such as those in Florida; in Rust Belt metros like Camden, N.J., or New Haven, Conn.; and in some California cities like Bakersfield and Fresno have shown very little recovery five years later. McLaughlin said that what's driving recovery in some areas and barely at all in others is a combination of income growth, population growth, and vacancy rates. "A 1-point increase in income growth across metros is correlated with a 3.5-point increase in the share of homes that have recovered, while a 1-point increase in population growth and the vacancy rate is correlated with a 2.8-point increase and a 1.7-point decrease in the share of homes that have recovered, respectively," McLaughlin wrote. "When incomes rise, households tend to spend more on housing, which pushes up prices." Meanwhile, he said, job growth isn't correlated at all with home price recovery. But, "while job growth isn't directly correlated with home value recovery, there is a direct relationship between job growth and income growth, the latter of which is strongly correlated with home value recovery," he said. of millennials are looking to achieve the amount of savings or income necessary to live their desired lifestyle, whereas 55 percent of Gen Xers and baby boomers are saving to leave the workforce. Source: Spring 2017 Merrill Edge Report STAT INSIGHT 63% www.ZVNPROPERTIES.com | 330.854.5890 | info@zvnproperties.com INSPECTIONS | PROPERTY PRESERVATION | REO | HAZARD CLAIMS | MULTI-FAMILY CONSTRUCTION | REPAIR & RESTORATION P R O P E R T I E S I N C Z N V

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