The Midwest is seeing more big percentage increases in home prices than any other region, a recent study of values in major metropolitan areas shows.
Almost half of the cities with the largest increases during the past year were in that region, according to TRW Redi Property Data, Anaheim, Calif.
"The manufacturing industry there is making a big comeback," said Nima Nattagh, research analyst for the company. The Midwest's economy continues to be stronger than those on the East and West Coasts, he added.
Some states, like Michigan, have seen phenomenal home price increases in the past six years. Values in Battle Creek, Mich., increased almost 90% since 1990, the study reports. Indianapolis had price increases of more than 20%.
The Northwest also made a strong showing, with Portland and Salem, Ore., and Tacoma, Wash., ranking among the top 20 in price increases in the past year.
Some northeastern cities started to pull themselves out of recession. New London, Conn., and Pittsfield, Mass., have seen increases in home values this year following steady decreases for the past six years.
California remained on the low end of the spectrum; three- quarters of the greatest declines in the past year occurred there.
Mr. Nattagh said that though "the rate of (California home value) decline has slowed down," the Southern California market will remain soft. Despite the overall statistics for the state, values in the upper tiers of the state's housing markets are improving, he added.
Overall, Mr. Nattagh said, home values across the nation have stabilized in recent years, with declining markets starting to improve, and home values in hot markets appreciating less rapidly.
