San Diego neighborhoods that were hardest hit by the housing crisis have yet to recover.
While single family home prices in many neighborhoods have pretty much matched pre-recession levels, those that had the highest number of foreclosures are still struggling, according to a recent study by Zillow Group, a real estate marketing firm.
For the most part, North County neighborhoods had the strongest recovery.
The Zillow study listed neighborhoods by ZIP code, and the Cardiff neighborhoods in the 92007 ZIP code showed the strongest recovery with home values at 99 percent of pre-crisis levels.
Several other North County ZIP codes have recovered with post-recession home prices at 97 percent or more of what they were prior to the financial crisis, such as those in the 92129 ZIP code in Rancho Penasquitas, the 92010 ZIP code in Carlsbad and the 92128 ZIP code in Rancho Bernardo.
“In general, the further east and the further south you go, the recovery has been a little less robust,” said Aaron Terrazas, a researcher with Zillow.
Part of the problem is that prices dropped far more in middle- to low-income neighborhoods than in wealthier areas.
“Those were the areas that had seen the kind of marginal lending,” Terrazas said. “Demand dried up during the financial crisis and those areas are where the prices crashed the furthest. There were a lot of relatively high income areas that had very minimal drop in home values.”
“There’s kind of a reason for home buyers who are feeling stretched to look at those communities,” Terrazas said. “Those affordable communities do offer a lot of value for people who are seeking kind of more affordable areas.”