State of play: Many homeowners bought before prices surged in the early 2020s. As of October, the median home value had jumped roughly 67% since the property was last sold. Just 4% lost value in that time, around 8.5 years for the typical homeowner. Losses between sales are up slightly from a year ago (2%) but lower than pre-pandemic levels (11%).
Generally speaking, housing markets where inventory (i.e., active listings) has returned to pre-pandemic 2019 levels have experienced weaker home price growth (or outright declines) over the past 36 months. Conversely, housing markets where inventory remains far below pre-pandemic 2019 levels have, generally speaking, experienced more resilient home price growth over the past 36 months. Of the 50 largest metro area housing markets, 21 major metros now have more homes for sale than at the same point in 2019.
In the wake of the Great Recession, which lasted from December 2007 to June 2009, home prices fell precipitously, bottoming out in February 2011 at 25% lower than the pre-recession high reported in July 2006, according to the Case-Shiller index. Plunging home values left millions of Americans hesitant to invest in a home and led to a sharp decline in the number of skilled laborers in the homebuilding sector.