The recovery in the US residential real estate market is continuing to mature with Spring buying activity started to take marginal effect on short term price trends, according to the latest analysis from Clear Capital.
Its latest report also shows that quarterly, national and regional gains saw a slight uptick over April but price growth remains mixed at the metro level.
The West, South, Northeast and Midwest saw quarterly gains of 2.4%, 1.1%, 0.8% and 0.7%, respectively while nationally, home prices saw a 1.3% quarterly gain, and a 8.2% annual gain.
But the data shows that price trends at the national and regional levels can tell a very different story. Las Vegas saw yearly gains soar by 27%, surpassing the yearly gains of 25.7% in Phoenix. This is the first time since April 2012 that Phoenix has not led the top 50 major metro markets in yearly gains.
While Las Vegas yearly gains continue to pick up steam, the market has a long road ahead, according to Alex Villacorta, vice president of research and analytics at Clear Capital.
‘Current prices remain 57.1% below the peak and would need to climb another staggering 133.3% to reach peak values. It would take Las Vegas home prices nearly four years at the current annual growth rate of 27% to get back to 2006 levels. While this is unrealistic over the short or even mid term horizon, it puts the current gains into context,’ he explained.
He pointed out that Phoenix, on the other hand, has seen a slight moderating pattern over the last several months, a healthy move for a market that has been very hot over the last year. ‘This market also has a long road ahead, with prices still 45.9% below their peak,’ he said.