American housing wealth was slashed by $7 trillion during the housing slump between 2006 and 2009 but now is poised to reach a new high. The value of homeowner equity in real estate has nearly doubled from a low in the first quarter of 2009, closing in on recouping the $7 trillion lost in the recession. Bloomberg staffer Steve Matthews analyzes the historical data from Federal Reserve, and does the math. Matthews writes:
“Improving property values are allowing homeowners to shake off recent stock-market volatility and keep spending. From the end of 2013 through last year’s third quarter, home equity climbed 20 percent compared with a 4 percent gain in the Standard & Poor’s 500 Index.
Some cities, including Charlotte, are already seeing prices at all-time highs. Home values in Dallas, Denver, and San Francisco and Portland, Oregon, all hit records in December, while they’re down less than 1 percent in Boston from an August peak, according to S&P/Case-Shiller indexes. About 38 percent of 87 U.S. metropolitan areas were in record territory last year, data tracker RealtyTrac figures show.”