Freddie Mac: More U.S. Housing Markets Improving
Freddie Mac, McLean, Va., said its Multi-Indicator Market Index shows the spring housing season shifting into higher gear.
The index increased to 83.8, indicating a housing market on the outer range of its historic benchmark level of housing activity, with a 1percent improvement from February to March and a three-month improvement of 1.56 percent. On a year-over-year basis, the national MiMi value has improved by 7.23 percent. Since its record low in October 2010, the national MiMi has rebounded by 41 percent, but remains significantly off from its high of 121.7.
“The U.S. housing market is poised to have its best year in a decade and the spring home buying season is off to a strong start,” said Freddie Mac Deputy Chief Economist Len Kiefer. “Pent up demand for homes and near record-low mortgage rates are bolstering housing markets across the country.”
The report said six more metro areas and one state, Kentucky, are now within their benchmark ranges.
Other report highlights:
–Thirty-six states plus the District of Columbia have MiMi values within range of their benchmark averages, with the District of Columbia (102), Hawaii (96.7), Colorado (95.9), Montana (95.6) and Utah (95.6) in the top five.
–Sixty-five of the 100 metro areas have MiMi values within range with Salt Lake City (98.9), Honolulu (98.7), Los Angeles (98.2), Nashville (98.1) and Austin (102.2) in the top five.
–Most improved states month over month were Tennessee (2.49%), Mississippi (1.97%), Oregon (1.93%) Florida (1.74%) and Massachusetts (1.64%). On a year-over-year basis, most improving states were Colorado (15.54%), Florida (15.19%), Oregon (14.17%), New Jersey (13.70%) and Nevada (13.64%).
–Most improved metro areas month over month were Chattanooga, Tenn. (3.15%), Nashville (2.72%), Oxnard, Calif. (2.51%), Knoxville, Tenn. (2.32%) and Orlando (2.23%). Year-over-year, most improved metro areas were Orlando (19.54%), Denver (18.22%), Tampa (17.02%), Cape Coral, Fla. (16.89%) and Portland, Ore. (15.63).
–Forty-one states and 84 of the top 100 metros showed an improving three-month trend. The same time last year, 45 states and 96 of the top 100 metro areas were showing an improving three-month trend.
“The impact of rising house prices coupled with tight supplies of for-sale homes in many markets has the potential to make it difficult for the typical family to buy a home despite these low mortgage rates,” Kiefer said. “Similar to last month, we still see pockets of weakness in the Midwest and South, though they are improving, while the Northeast, and especially the West are generally doing better.
The report said North Dakota dropped out of the top five ranked states in MiMi for the first time since the index launched in 2014.
