Once U.S. house prices start recovering, how long will it take to return to the peaks of a few years ago?

A new study from the Federal Housing Finance Agency suggests that we shouldn’t be holding our breath.

The study by the FHFA, the agency that regulates government-backed mortgage companies Fannie Mae and Freddie Mac, looks at local and regional housing busts over the past several decades based on its own price indexes. It finds that it can take more than 10 years for prices to return to their previous peaks after they start to fall. The drop from the peak tends to be much swifter than the recovery.

For cities with busts between 1975 and the present, the study examines the duration from the start of a decline in real, or inflation-adjusted, prices to the return to the prior peak. The median duration was 10.75 years, but sometimes downturns can be much longer. For instance, in Midland, Texas, inflation-adjusted prices fell 56% between 1982 and 2000 before starting to recover. They still haven’t returned to the 1982 level

Source: Wall Street Journal

Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


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John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



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