U.S. Housing Markets Stalling
Location: McLean
Date: 2014-05-30
Freddie Mac (OTCQB:
FMCC) this week released its
Multi-Indicator Market Index(SM) (MiMi(SM)) showing the
U.S. housing market overall largely flat compared to the prior month
and especially since last year at this time. Of those markets that
are improving or experiencing a stable range of housing activity,
most are benefiting from the energy boom taking place along the
country's mid-section.
News Facts:
- The national MiMi value stands at -3.06 points indicating a
weak housing market overall with only a slight improvement
(+0.03 points) from February to March and a 3-month flat trend
(+0.05 points). However, on a year-over-year basis, the U.S.
housing market has improved by 0.66 points. The nation's
all-time MiMi low of -4.49 was in November 2010 when the housing
market was at its weakest.
- Ten of the 50 states plus the District of Columbia are in
their stable range with North Dakota, Wyoming, the District of
Columbia, Alaska, and Louisiana ranking in the top five and
unchanged from last month.
- Four of the 50 metro areas are in their stable range, San
Antonio, New Orleans, Austin and Houston.
- The five most improving states month-over-month are Ohio
(+0.12), Rhode Island (+0.11), Illinois (+0.10), Texas (+0.10)
and South Carolina (+0.09). From one year ago the most improving
states remained unchanged: Florida (+1.83), Nevada (+1.60),
South Carolina (+0.99), California (+0.97) and Texas (+0.96).
- The five most improving metro areas month-over-month are
Cincinnati (+0.11), Columbus (+0.11), Houston (+0.10), Riverside
(+0.10), and San Antonio (+0.10). From one year ago the most
improving metros remained unchanged: Miami (+2.37), Orlando
(+1.91), Las Vegas (+1.71), Tampa (+1.57), and Riverside
(+1.44).
- Overall, in March, 13 of the 50 states plus the District of
Columbia are improving based on their three month trend, and 20
of the 50 metros show an improving trend.
Quote attributable to Freddie Mac Chief Economist Frank Nothaft:
"Less than half of the housing markets MiMi covers are showing an
improving trend, whereas at this same time last year more than 90
percent of these same markets were headed in the right direction.
We're hopeful that many of these markets that have stalled will
start moving again now that mortgage rates have eased over the past
month and the spring home buying season is upon us. House price
gains are a double-edged sword at this stage of the recovery. They
help those hard-hit markets where prices are still low and many
homeowners are underwater, but in areas where supply is constrained,
they're creating an imbalance and pricing out many first-time
homebuyers."
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