Easing prices, lower rates mean good news for homebuyers
The US housing market is heating up for spring and – just in time – there is a boost for affordability.
Nationwide says that with easing home prices combined with lower mortgage rates, homebuyers should find improving conditions after the recent tough times.
"The last few years have been difficult for homebuyers. From unsustainably rapid price gains to higher mortgage rates to tight supplies of homes for sale, it's been an increasingly difficult time to buy a home," said David Berson, Nationwide senior vice president and chief economist. "But, with slower house price increases and recent declines in mortgage rates, coupled with a still solid job market and rising wages, the spring homebuying season looks as pretty positive."
In its Health of Housing Markets Report (HoHM Report), the firm says that despite a better alignment of home prices and incomes, and strong household formations in most markets, there is still an ongoing lack of inventory.
The strongest markets
Based on the HoHM Report’s Leading Index of Healthy Housing Markets (LIHHM) the national forecast is positive for the first time in a year.
The 10 most positive forecasts are for the following metros:
- Lawton, Okla.;
- Waterloo-Cedar Falls, Iowa;
- Sumter, S.C.;
- Trenton, N.J.;
- Watertown-Fort Drum, N.Y.;
- Houston-The Woodlands, Texas;
- Chicago-Naperville, Ill.;
- Hinesville, Ga.;
- Des Moines-West Des Moines, Iowa;
- Abilene, Texas.
Those with the least positive outlooks are:
- Bismarck, N.D.;
- Kennewick-Richland, Wash.;
- Owensboro, Ky.;
- Pueblo, Colo.;
- Beckley, W.V.;
- Yakima, Wash.;
- Rapid City, S.D.;
- Midland, Texas;
- Ogden-Clearfield, Utah;
- Janesville-Beloit, Wis.
Hurricane-affected markets recovering
Nationwide’s analysis shows that the markets affected by hurricanes in 2018, especially Florida and the Gulf Coast of Texas, are recovering in line with expectations.
"While those areas are still recovering from the storms of 2017, the drop in delinquency rates shows that conditions are improving," said Berson.
Texas markets running along the Gulf from Corpus Christi to Beaumont-Port Arthur and Florida markets from Tampa-St. Petersburg south saw significant reductions in mortgage delinquencies by the end of 2018.
