What do the real estate markets of Dallas, Denver, Portland and Boston have in common? According to the latest release of the S&P/Case-Shiller Home Price Index, home prices in these four cities rose to new all-time peaks in September. That means house values in these cities have never been higher than they are right now — not even during the housing bubble.
Home prices in Dallas and Denver returned to their pre-crisis peaks back in the summer of 2013. And they’ve been climbing ever higher since then. More recently, in September 2015, house values in Dallas and Denver rose again to reach new all-time highs.
Boston and Portland, on the other hand, are new members of the “price peak” club. Home prices in these two real estate markets rose above pre-bubble levels for the first time in September 2015. It bears repeating, house values in Boston and Portland are now higher than they’ve ever been before, based on the Case-Shiller Home Price Index. These real estate markets have recovered all of what was lost during the housing bust and are now rising into uncharted territory.
Here’s a more in-depth look at these four notable housing markets.
Boston Home Prices Reach Unprecedented Heights
According to Case-Shiller, home prices in Boston, Massachusetts rose 4.8% during the 12-month period ending in September 2015. That puts them slightly above the previous peak reached in 2005. House values in the Boston area have risen 26% since hitting “bottom” in 2009.
Additional gains are likely in 2016 as well, according to several sources. Zillow’s economists, for example, recently forecast an additional 2.7% increase in Boston home values over the next year or so (through November 2016). This is based on the company’s proprietary Zillow Home Value Index, or ZHVI.
Dallas Housing Market Still Hitting New All-Time Highs
Dallas, Texas was one of the first major metros where home prices rose above pre-crisis levels. We reported this trend back in August 2013. And the market there hasn’t stopped climbing yet. Dallas home prices continue to rise due to strong demand and economic stability. Of course, it helps that Texas largely avoided the dramatic price plummets associated with the housing crisis.
According to Zillow, home prices in Dallas rose by a whopping 16% over the last year or so (when measured in November 2015). Looking forward, they expect the ZHVI for Dallas to rise by another 5.8% over the next 12 months. So while the Dallas real estate market appears to be cooling, it’s still a hot market by any yardstick. Perhaps that’s why it was ranked as the #1 market to watch in 2016.
Denver Named Hottest Housing Market in U.S.
Denver posted the second highest year-over-year price gain in September, according to the Case-Shiller report. Home prices in the Mile-High City rose 10.9% from Sept. 2014 to Sept. 2015. They are now significantly higher than they were during the housing boom.
Earlier this month, Realtor.com ranked Denver as the hottest housing market in the United States for the month of October. To determine these rankings, the company’s economic team “reviewed listing views by market as an indicator of demand and median days on market as an indicator of supply.” Based on these factors, they ranked the 20 “hottest” medium-size to large housing markets in the country, and Denver topped the list.
Portland’s Real Estate Market Continues to Rise
During the housing bubble, home prices in Portland, Oregon peaked in July 2007. Then they plummeted and didn’t find a hard bottom until several years later, in 2012. Prices fell by nearly 31% during those crisis year. But the Portland housing market has rebounded completely since then. According to Case-Shiller, house values in the city climbed above the 2007 peak in September 2015. As with the other cities on this list, home prices in Portland are higher now than ever before.
And they could rise even higher in 2016, according to some housing analysts. In November, Zillow’s economic team issued the following forecast for this real estate market: “Portland home values have gone up 13.5% over the past year and Zillow predicts they will rise 5.7% within the next year.”
Disclaimers: This story makes forward-looking statements regarding home prices and other real estate conditions. Forecasts were provided by third parties not associated with the Home Buying Institute. The publishers of this website make no claims or assertions about future housing conditions or trends.