Home values are up in a number of bubble markets and we’re back to a situation where all real estate is local.

According to the latest Case-Shiller home price indices, Phoenix home values are up 23% from a year ago. Yet even with that great gain, the market is still down 44% from peak values.

With Phoenix in particular, people came in and bought houses no money down. Some speculators bought 10 or more properties at a time with borrowed money. They never intended to occupy or rent them. They just wanted to flip them and try to realize a 20% profit in just a few short months.

But we all know how that movie played!

You had the same thing in Las Vegas. Sin City values are up almost 18% in the last year, but they’re still 55% below their peak.

San Francisco is up 19% over last year, yet it’s still more 30% below peak. Atlanta is up 16% year over year, yet it’s still 28% below its peak.

Other markets aren’t seeing such extreme swings. Dallas is up 7%, but values are still down 4% below their peak. Denver is up 9%, but it’s still down 4% since peak.

The Wall Street Journal  reports the cost to buy a home vs. income is the most favorable right now that it’s been going back to 1980. The combination of values still being below peak and incredibly low interest rates are a winner.

Image of Clark Howard About the author: Clark Howard

Clark Howard is a consumer expert whose goal is to help you keep more of the money you make. His national radio show and website show you ways to save more, spend less and avoid getting ripped off. View More Articles

Show Comments 0