The U.S. housing market has improved by 4% since last year, but these metro housing markets have shown the most momentum.
Year-over-year the housing market is improving despite a slight recorded drop month-over-month from July to August, according to latest Freddie Mac Multi-Indicator Market Index (MiMi). The U.S. housing market is stabilizing as more local markets, both larger and smaller, show better improvement, but these five cities have shown the most momentum.
"The good news from MiMi this month is the improvement across more markets, and not just the large markets like Los Angeles and New York, which receive so much of the attention,” said Freddie Mac Deputy Chief Economist Len Kiefer. “In fact, we're beginning to see better signs on the purchase applications front in general.”
MiMi monitors and measures the stability of the nation's housing market, as well as in all 50 states, the District of Columbia and the top 50 metro markets. MiMi assesses the long-term stability of areas by looking at home purchase applications, payment-to-income ratios (changes in home purchasing power based on house prices, mortgage rates and household income), on-time mortgage payments and unemployment rates.
The national MiMi value stands at 73.3, indicating a weak housing market overall and showing a slight decline (-0.19%) from July to August and a three-month decline of -0.47%. On a year-over-year basis, the U.S. housing market has improved by 4%.
The nation's all-time MiMi high of 121.9 was reported in June 2008; its low was 59.8 in September 2011, when the housing market was at its weakest. Since that time, the housing market has made a 22.6% rebound.
These are the top improving housing markets on a year-over-year basis:
- Las Vegas (21.53%): The Las Vegas housing market is weak, but improving. The city’s MiMi for August was 49.1, an improvement of 1.03% over the previous month and 3.59% over the last three months. Las Vegas is largely improving due to the 9.28% increase in on-time mortgage payments during the last three months.
- Chicago (13.98%): The Chicago housing market is improving largely because of a 10.67% increase in employment during the last three months. The city’s MiMi for August was 63.6, a 0.79% improvement over the previous month and 2.91% over the last three months.
- Riverside (11.99%): The Riverside housing market is improving largely because of a 4.86% increase in employment during the last three months. The city’s MiMi for August was 71.9, a 0.28% decrease compared to the previous month and a 1.27% improvement over the last three months.
- Miami (11.43%): The Miami housing market is improving largely because moderate improvements across MiMi’s four criteria areas. The city’s MiMi for August was 69.2, a 0.58% improvement over the previous month and 2.52% over the last three months.
- Orlando (8.7 %): The Orlando housing market is improving largely because of a 4.86% increase in employment during the last three months. The city’s MiMi for August was 58.7%, a 0.34% decrease compared to the previous month and 0.34% decrease over the last three months.
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