With the booming real estate markets in the Bay Area, particularly San Francisco and San Jose, it’s easy to overlook the fact that nationwide, areas that experienced the highest rate of foreclosure during the previous recession have still not fully recovered. In fact, across the largest 35 metro areas, only 39 percent of homes in sections with the most foreclosures have fully recovered.
Overall, 21 of the largest 35 metro areas have recovered their pre-recession peak median home values. Nationwide, median home values are approximately 9.8 percent above what they were at the bubble’s peak. Yet, many economists are concerned that a significant number of homes will not recapture their pre-recession value before the next downturn eventually comes.