What does full recovery look like?

Average home prices i St. Paul

I have been reading articles about the housing market that indicate it has made a full recovery. I guess I could argue that at the last peak we hit a bubble that wasn’t sustainable. Yet it has been a decade since the peak and you would think by now prices would be back to what they were at the peak but they are not.

We can see by looking at the line at the 2016 end of the chart that home prices have started kind of leveling off. We will see more of the same in 2017. Home prices will go up slightly.

In some St. Paul neighborhoods like Hamline Midway and the West 7th neighborhood home values are where they were at the peak, even slightly higher. In other neighborhoods like the Greater East side home values are lower than they were during the last peak. If you average out the whole city home values are close to what they were during the peak.

Tomorrow I’ll have the December home sale numbers.

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