RISMedia's Real Estate Magazine

MAY 2016

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/668992

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Page 75 of 118

RISMedia's REAL ESTATE May 2016 71 The national MiMi value stands at 82.7, indicating a housing market that's on the outer range of its his- toric benchmark level of housing activity, and little changed with a +0.18 percent improvement from December to January, and a three- month improvement of +1.46 per- cent. However, on a year-over-year basis, the national MiMi value has improved +7.57 percent. Since its all-time low in October 2010, the national MiMi has rebounded 40 percent, but remains signifcantly off from its high of 121.7. "Despite a stronger job market and declining unemployment, wage gains have not kept pace with house prices, putting a pinch on homebuy- er affordability," says Freddie Mac Deputy Chief Economist Len Kiefer. "In the top 100 metro areas MiMi tracks, Los Angeles and Honolulu have elevated payment-to-income indicators and Miami, Fla., is very close to elevated. An additional six metro areas have their MiMi payment-to-income indicators over 100, indicating that the payment- to-income statistic for that area is above its historic benchmark. At the state level, the District of Columbia has an elevated payment-to-income indicator, while Hawaii and Califor- nia have values above 100." Thirty-four of the 50 states plus the District of Columbia have MiMi values within range of their bench- mark averages, with the District of Columbia (101.8), North Dakota (96), Hawaii (95.6), Montana (95.1) and Utah (94.5) ranking in the top fve. Compared to the same time last year, 22 states and the District of Columbia had MiMi values within their benchmark ranges. Fifty-six of the 100 metro areas have MiMi values within range, with Denver, Colo. (99.8), Austin, Texas (99.1), Salt Lake City, Utah (97.7), Honolulu, Hawaii (97.6) and Los Angeles, Calif. (96.9) ranking in the top fve. Compared to the same time last year, 29 of the top 100 metros had MiMi values within their benchmark ranges. The most improved states month- over-month were Colorado (+1.41 percent), Oregon (+1.31 percent), Mississippi (+1.07 percent), New Jersey (+1.05 percent) and Ari- zona (+0.88 percent). On a year- over-year basis, the most improved states were Florida (+16.72 per- cent), Colorado (+15.56 percent), New Jersey (+14.61 percent), Ne- vada (+14.21 percent) and Oregon (+14.04 percent). The most improved metro areas month-over-month were Colorado Springs, Colo. (+2.09 percent), Den- ver, Colo. (+1.53 percent), New Or- leans, La. (+1.48 percent), Ogden, Utah (+1.19) and Stockton, Calif. (+1.12 percent). On a year-over-year basis, the most improved metro areas were Orlando, Fla. (+20.39 percent), Cape Coral, Fla. (+19.25 percent), Denver, Colo. (+19.09 per- cent), Tampa, Fla. (+18.93 percent) and Portland, Ore. (+18.07). In January, 44 of the 50 states and 78 of the top 100 metros were showing an improving three-month trend. Compared to the same time last year, 13 of the 50 states and 42 of the top 100 metro areas were showing an improving three-month trend. "These payment-to-income indica- tors are high despite the fact that mortgage interest rates remain low," says Kiefer. "Mortgage rates fell at the start of the year, helping to bol- ster affordability heading into the spring season. But a lack of avail- able inventory of for-sale homes has constrained many markets. We see that refected in the MiMi pur- chase applications indicator, which remains weak nationwide." RE For more information, visit www.freddiemac.com. U.S. Housing Market Back on Track M any of the nation's housing markets are moving back to normal, according to a recently released Freddie Mac Multi-Indicator Market Index® (MiMi®) . However, there are pockets of weakness, particularly in the Great Lakes Region and in the South outside of Florida and Texas.

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