Since then, there’s been a long and slow slog to recovery. Compared to the peak of the national housing market in 2006, US home prices are about 1% higher, on average.
But many states still have home prices in the red compared to where they were at the top.
To be clear, home prices at the precrash peak were far from normal; that’s why a bubble formed and then popped. Yet some homeowners who bought at the market top and survived the crash would sell at a loss today.
Below are the states where average home prices are still below their precrisis peak. It has the negative peak-to-current price change, reflecting how far underwater homeowners who bought at the top and held on still are, and the trough-to-current price change, showing how much prices have recovered from the worst point of the crisis.