Freddie Mac: 80% of Largest U.S. Housing Markets Improving

Freddie Mac, McLean, Va., said its Multi-Indicator Market Index rose again in the third quarter, with more than 80 percent of the largest U.S. housing markets showing improvement.

The MiMi rose by 0.42 percent to 86.4 from September to October and by 1.86 percent from July, suggesting a housing market that’s on the outer edge of its historic benchmark range of housing activity. From a year ago, the index improved by nearly 6 percent; since its record low in October 2010 the MiMi has rebounded by 46 percent.

“The purchase applications indicator is up nearly 20 percent from last year and is reflected in the recent better-than-expected existing and new home sales purchase data,” said Freddie Mac Deputy Chief Economist Len Keifer. “While we see strong house price growth in markets like Dallas, Houston, Orlando, Phoenix and others, most are still well below their pre-2008 peak and still have significant room for improvement.”

The report said 41 states plus the District of Columbia had MiMi values within range of their benchmark averages, with Colorado (98.6), Utah (101.5), Hawaii (98), Idaho (97.2) and Oregon at (96.8) ranking in the top five with scores closest to their historical benchmark index levels of 100. Seventy-seven of the 100 metro areas have MiMi values within range of their benchmark averages, with Dallas (100.2), Nashville, Tenn. (100.5), Honolulu (100.8), Ogden, Utah (100.8) and Los Angeles (99.1) ranking in the top five with scores closest to their historical benchmark index levels of 100.

Most improved states month over month were Nevada (+1.96%), Connecticut (+1.45%), Arizona (+1.40%), South Carolina (+1.33%) and Washington (+1.31%). On a year-over-year basis, most improving states were Nevada (+12.87%), Massachusetts (+12.77%), Florida (+11.65%), Mississippi (+11.53%) and Arizona (+10.28%).

Most improved metro areas month over month were Springfield, Mass. (+1.96%), Tucson, Ariz. (+1.87%), Las Vegas (+1.77%), Ogden, Utah (+1.51%) and Worcester, Mass. (+1.48%). On a year-over-year basis, most improved metro areas were Orlando (+17.45%), Worcester (+16.02%), Chattanooga, Tenn. (+14.78%), Dallas (+14.51%) and Tampa (+14.45%).

Freddie Mac said 43 of the 50 states and 82 of the top 100 metros showed an improving three-month trend. The same time last year, 30 states and 69 of the top 100 metro areas were showing an improving three-month trend.