San Francisco and Detroit led the housing market rebound according to the September Home Data Index released Tuesday by Clear Capital.
San Francisco led metro price performance in September, with 4.4 percent quarterly growth and 28.3 percent yearly growth. Detroit home prices saw 4.3 percent and 23.3 percent in quarterly and yearly growth, respectively.
National home price gains in September picked up to 10.9 percent year-over-year, which Clear Capital attributed to residual summer buying activity.
“While national and regional rates showed more of the same in September, an interesting dichotomy is unfolding beneath the surface,” said Dr. Alex Villacorta, vice president of research and analytics at Clear Capital.
“Strong performances in San Francisco and Detroit remind us that in a dynamic market, the only constant is change. For about a year and a half now, we’ve been focused on First-In, First-Out recoveries characterized by hard hit markets attracting investor interest, like Miami, Phoenix and Las Vegas. Now as the recovery matures, we see home buyers re-engaging in markets that haven’t fit the typical investor profile.”
San Francisco median home prices stood at $600,000 in September according to the report, while the median price in Detroit was $107,500. The national median home price was $215,000.
“San Francisco REO saturation remains low, at 6.3 percent, yet Detroit REO saturation remains relatively high and much improved, at 31.7 percent,” the report noted. “Yet over the last four years, REO saturation in Detroit has been cut in half. Just over the last six months,REO saturation fell by 11.5 percentage points.”
“Detroit was arguably one of the hardest hit in the country and is finally seeing a recovery with 23.3% growth over the year. Detroit’s struggle with relatively high REO saturation over the last several years delayed recovery,” Villacorta said. “Now, low price points and recent improvements in REO saturation, a key precursor to recovery, are driving gains. On the other hand, San Francisco’s median home price at $600,000 suggests non-investor home buyer demand is materializing, supported by its relatively strong local economy.”