Lower-value properties in R.I. lagging home price recovery

BLACK KNIGHT FINANCIAL SERVICES LISTED the top 10 states where home price recovery is lagging for lower-valued properties, and Rhode Island ranked fourth on the list. / COURTESY BLACK KNIGHT FINANCIAL SERVICES
BLACK KNIGHT FINANCIAL SERVICES LISTED the top 10 states where home price recovery is lagging for lower-valued properties, and Rhode Island ranked fourth on the list. / COURTESY BLACK KNIGHT FINANCIAL SERVICES

PROVIDENCE – Rhode Island is among the 10 hardest-hit states where home price recovery for the lowest 20 percent of property values has lagged behind the highest tier, according to Black Knight Financial Services.
Nevada tops the list, followed by Arizona, Florida, Rhode Island, Maryland, Connecticut, Illinois, New Jersey, Michigan and California. Data was based on data from the end of November.
In Rhode Island, prices in the bottom 20 percent are 28.9 percent off precrisis peak prices, compared with 22 percent in the highest price tier.
According to Black Knight, home prices peaked in the Providence metropolitan area in June 2006 at $308,000; in October, average home prices were $244,000.
In Nevada, prices for properties in the lowest tier are nearly 47 percent off the peak price, compared with 36 percent in the highest tier. Las Vegas home prices peaked at $332,00 in May 2006; they were $196,000 in October.
California’s highest tier has come within just over 3 percent of the pre-crisis peak, while those in the lowest tier are still almost 32 percent down from that time period. California’s peak price was $520,000 in May 2006, compared with an average home price of $414,000 in October.

“We looked at HPI appreciation from pre-crisis peaks to today in the 10 states currently trailing the furthest behind their pre-crisis housing maximums,” Trey Barnes, Black Knight’s senior vice president of Loan Data Products, said in a statement. “The data showed a clear difference in the levels of recovery among home price tiers. The Black Knight HPI separates home values for every geographical division into five equal tiers; those in the lowest 20 percent of home values have been lagging behind their higher-valued counterparts in recovery to pre-crisis peaks, sometimes considerably.”
“In many cases, these disparities between price tiers can be attributed to the fact that during the bubble, lower-tier properties appreciated at much higher rates than higher-valued properties and likewise fell harder and further when the bubble broke,” he said.

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