Zillow’s chief economist, Svenja Gudell, said the long-running imbalance in the market – the lack of enough homes for sale – has continued to push prices up.
The result is a growing threat to affordability in some places, but there’s a natural counterbalance coming, she said. “As mortgage interest rates rise, larger, more expensive markets will continue to become more unaffordable, which will cause home price growth to slow.”
Atlanta’s home prices rose steadily, if not spectacularly through the boom, cresting in 2007, roughly a year after the top of the market nationally. But once Atlanta’s bubble burst, the prices here crashed along with everyone else, dropping 40 percent on average – and a lot more in many areas.
Since that bottom, Atlanta’s average price has climbed 61.7 percent.
And while the average price is approaching the pre-recession peak, it would be about 15 percent less when adjusted for inflation the buying power of homeowners has been trimmed about 15 percent by inflation.
Average price increases, past year:
Seattle 10.8 percent
San Diego 10.0 percent
Denver 8.9 percent
Tampa 8.4 percent
Dallas 8.1 percent
Miami 6.8 percent
ATLANTA 6.3 percent
Boston 6.3 percent
Las Vegas 5.8 percent
San Francisco 5.7 percent
Source: S&P/Case-Shiller House Price Index