Below is a look at how far home prices still are from their all-time
highs made during the housing bubble that peaked in 2005. While the two
composite indices are still 20% from their all-time highs, 2 of the 20
cities have actually already taken out their bubble highs -- Dallas and
Denver. Boston and Charlotte are the next closest to their prior highs,
while San Francisco is just 15% away. Given how far San Francisco
prices fell during the bursting of the bubble, the fact that it's now
just 15% away from new highs is pretty remarkable. The social
media/Internet craze of the last few years has definitely inflated
prices significantly there.
As you can see below, San Francisco's home prices are up the most off of
their housing-bust lows, gaining 54% at this point. Las Vegas has
bounced the second most off its lows at +46%, but as you saw in the
chart above, Vegas home prices are still 44% from their prior highs. At
the bottom of the list below is New York, which has now seen home
prices bounce just 8% off of their lows. There are certainly pockets of
the New York area that have seen big jumps in prices, but the
Case-Shiller data shows that the area has underperformed on the bounce
back compared to other cities.
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