Southern States Show Strongest Housing Improvement
Freddie Mac, McLean, Va., said the U.S. housing market improved for the 49th consecutive month (year over year) in May, with two more states and eight more metro areas reaching historic benchmark levels of housing activity.
The company’s Multi-Indicator Market Index rose to 85 in May, a 1.05 percent improvement from April and a 2.39 percent quarterly improvement. Year over year, the MiMi improved by 7.30 percent. Since its record low in October 2010, the index has rebounded by 43 percent, but remains well off its 121.7 high.
The report said Mississippi and Maryland and eight metro areas entered their historic benchmark levels of housing activity in May: Louisville, Ky.; Jacksonville, Fla.; Allentown, Pa.; Omaha, Neb.; Syracuse, N.Y.; Detroit; Milwaukee; and Lakeland, Fla.
Many of the Western markets continue to see strong home sales. However, it’s the Southern states where MiMi continues to register some of the strongest gains buoyed by an improving employment picture,” said Freddie Mac Deputy Chief Economist Len Kiefer. “For example, the majority of Southern states showed stronger employment growth than the national average and all of the eight markets in Florida that MiMi tracks are now back to their historic benchmark levels of housing activity.”
Other key data:
–Thirty-eight states and the District of Columbia have MiMi values within range of their benchmark averages, with Hawaii (97.8), Oregon (97.1), Utah (96.9), Montana (96.6) and Colorado (96.4) ranking in the top five.
–Seventy-five of the 100 metro areas surveyed have MiMi values within range, with Honolulu (99.8), Salt Lake City (100.2), Los Angeles (99.6), Nashville (101.5) and Portland, Ore. (98.4) in the top five.
–Most improved states month over month were North Carolina (1.85%), Georgia (1.82%), Florida (1.69%), Mississippi (1.65%) and Tennessee (1.60%). On a year-over-year basis, most improved states were Florida (14.73%), Oregon (14.64%), Colorado (13.68%), Nevada (12.36%) and New Jersey (12.23%).
–Most improved metro areas month over month were Chattanooga, Tenn. (3.45%); Orlando, Fla. (2.50%); Detroit (2.39%); and Charlotte, N.C.; Greensboro, S.C.; and Palm Bay, Fla. (2.24%). On a year-over-year basis, most improved metro areas were Orlando (20.25%); Tampa (17.27%); Denver (16.20%); Cape Coral, Fla. (15.51%); and Palm Bay (15.29%).
–Forty-five states and 88 metros showed an improving three-month trend. The same time last year, 46 states and all of the top 100 metro areas showed an improving three-month trend.
