Local home prices still struggling to recover from housing crash | bakersfield.com

There’s no question that when the real estate bubble burst in 2007 and home prices throughout much of the nation crashed, millions of family homes lost billions of dollars in value.

The Great Recession soon followed.

Not only have home prices in Bakersfield not fully recovered from the declines suffered during that national crisis, Bakersfield is the second-least recovered metro area on a list of 100 major metro areas across the nation, according to HSH.com’s home price recovery index.

It’s not an ideal place to be, said HSH.com Vice President Keith Gumbinger. But it’s also not as dire as it sounds.

Even in metro areas like Bakersfield that remain well below their boom-year price peaks, homeowners have seen significant price recoveries since hitting their bottom values, Gumbinger said.

And single-family home prices in some areas were inflated to such a degree that even when they return to a “normal” value they may still be below their previous price peak.

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Local home prices still struggling to recover from housing crash | News | bakersfield.com.