US housing market moving further towards stability, says latest Freddie Mac index

The US housing market continues to slowly stabilise with prices just 7% below peak values nationally and price indices in many markets are at all-time highs, according to the latest multi indictor market index.

Two additional states, Arkansas and Tennessee, and four additional metro areas, of Omaha, Nebraska; Scranton, Pennsylvania; Chattanooga, Tennessee and Madison, Wisconsin, are now on the outer range of stable housing activity, says the report from Freddie Mac.

The national MiMi value stands at 80.3, indicating a housing market that is on its outer stable range, while showing an improvement of 1.33% from May to June and a quarterly improvement of 2.26%.

On a year on year basis, the national MiMi value has improved 5.41%. Since its all-time low in October 2010, the national MiMi has rebounded 35% but remains significantly off from its high of 121.7.

The data also shows that 28 of the 50 states plus the District of Columbia have MiMi values in a stable range, with the District of Columbia at 101.7, North Dakota at 96.2, Montana at 93.5, Hawaii at 92.9, and California and Utah tied at 89, ranking in the top five.

Some 42 of the 100 metro areas have MiMi values in a stable range, with Fresno at 96.8, Austin at 94.9, Honolulu at 93.7, Salt Lake City at 91.7 and Los Angeles at 91.5, ranking in the top five.

The most improving states month on month were New Jersey with growth of 2.61%, Florida up 2.6%, the District of Columbia up 2.31%, Connecticut up 2.26% and Nevada and Rhode Island both up 2.18%.

The index data also shows that year on year the most improving states were Oregon with growth of 13.59%, Florida up 13.27%, Nevada up 12.38%, Colorado up 10.18% and Rhode Island up 9.32%.

The most improving metro areas month on month were Stockton, California, up 3.48%, Cape Coral, Florida, up 3.36%, Sarasota, Florida, up 3.34%, Lakeland, Florida up 3.19% and Tampa, Florida up 2.96%.

On a year on year basis, the most improving metro areas were Orlando, Florida with growth of 16.22%, Cape Coral, Florida up 16.13%, Portland, Oregon up 14.57%, Palm Bay, Florida up 14.37% and North Port, Florida up 14.33%.

In June, 45 of the 50 states and 95 of the 100 metros were showing an improving three month trend. The same time last year, 33 of the 50 states plus the District of Columbia, and 80 of the top 100 metro areas were showing an improving three month trend.

‘Housing markets are the strongest they’ve been in years with the National MiMi above 80 for the first time since 2008. Nationally, all MiMi indicators are heading in the right direction,’ said Freddie Mac deputy chief economist Len Kiefer.

‘Robust home buyer demand has put total home sales on pace for the best year since 2007 and look for that trend to continue as the MiMi purchase applications indicator remains on the upswing. The West has been especially strong, with many markets posting double digit growth in their MiMi purchase applications indicator compared to a year ago,’ he pointed out.

‘While home prices are still 7% below peak values nationally, price indices in many markets are at all-time highs and current low interest rates are helping to support home buyer affordability,’ he explained.

He also pointed out that mortgage delinquencies are coming down rapidly, but are still high in many markets. Those markets hardest hit by the recent recession, including many in Florida, are rebounding but they still need to improve to get delinquencies back in line with their benchmark historic averages,’ he added.

‘The key driver of all this recovery has been solid job growth, with 96 out of 100 metros and all states within range of their benchmark historic average unemployment rate,’ he concluded.

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Source: Property News Spain