Report: Prov. metro home price gains slow, still below 2006 peak

WHILE THE PROVIDENCE METRO AREA SAW HOME PRICES INCREASE in July from a year earlier, the region is still significantly below its peak in June 2006, according to Black Knight Financial Services. / COURTESY BLACK KNIGHT FINANCIAL SERVICES
WHILE THE PROVIDENCE METRO AREA SAW HOME PRICES INCREASE in July from a year earlier, the region is still significantly below its peak in June 2006, according to Black Knight Financial Services. / COURTESY BLACK KNIGHT FINANCIAL SERVICES

PROVIDENCE – Home prices in the Providence metro area improved 4.2 percent in July on a year-over-year basis, according to Black Knight Financial Services, placing the region’s urban core 28th among the nation’s 40 largest metro areas for home price improvement.
And while the performance on Black Knight’s Home Price Index was a gain on June’s No. 33 ranking among the top 40 metros, the region still ranks among the most serious laggards for recovery from the housing price bust that precipitated the Great Recession.
According to Black Knight, at $255,000, home prices in the Providence metro area are still 17.7 percent below their June 2006 peak of $310,000, making the gap the 11th-largest in the nation. Home prices in the region stand 18.6 percent above the trough for prices, which was $215,000.
The real estate data and analytics firm reported that home prices in the United States increased 5.3 percent from July 2014 through July 2015 to an average of $253,000, a level that is 5.5 percent less than its July 2006 peak of $268,000 and 26.7 percent above the national trough in January 2012 of $200,000.
Black Knight HPI covers approximately 89 percent of single-family residential properties in the country.
The metro area with the largest gap from its peak prices is Las Vegas, which is 38 percent below its peak, which it reached in May 2006, at $333,000. In July the HPI hit $207,000. Right behind Las Vegas was Orlando, Fla., which is still 31.1 percent below its peak price.
The greatest home appreciation seen in the last year took place in San Jose, Calif., 14.4 percent to $865,000. In addition, whereas Providence still sits below its peak home prices, San Jose set a new high in July, one of 12 of the largest metro areas to hit new peaks in the month. As it was in June, St. Louis was the only metro area to register a home price drop for the 12 months through July, 0.7 percent, to $180,000.

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