Even Houston’s growing home values couldn’t be stopped by the plummeting oil prices
Despite the oil price crash, only two states in the country, Mississippi and Louisiana, saw declines in home values in January 2016. Washington saw the largest gain at 11.6 percent and Maine saw the lowest positive growth at 0.1 percent, according to MarketWatch.
As far as regions go, the Northwest and the Rocky Mountain regions had the fastest growth. Even areas that one might think would be affected the most by the severe decline in oil prices are seeing home values increase. The Houston Metro area saw prices rise 5.7 percent year-over-year and North Dakota and Texas saw yearly gains of 7.3 percent and 7.2 percent respectively. There was even growth in the last frontier, as Alaska saw prices rise 2.0 percent.
Prices are projected to rise 5.5 percent over the next year and the spring buying season looks like it is going to be a good one.
But some people in the industry worry that price appreciation at such a strong rate might squeeze the market and make it difficult for many people to dip their toes into homeownership.