Las Vegas Leads Stabilizing Home Markets
The Las Vegas housing market is leading the U.S. making a major improvement to stabilize, according to the Freddie Mac Multi-indicator Market (MiMi) study released for October. Nevada is also one of eight additional metro and state housing markets to show positive momentum. The report signals a major improvement for the Las Vegas housing market.
Las Vegas led the improving metro areas in the nation on a month-over-month basis (+1.03%), according to the index. Detroit (+0.95%) placed second for monthly improvement.”The bleeding has stopped from the rate increases from a year ago, which is reflected in the stable picture at the national level,” said Freddie Mac chief economist Frank Nothaft.
“Moreover, we’ve seen a pick-up in the number of states and metros improving at the local levels based on their three month trend pointing once again to more housing markets working their way back to the fundamentals, which is reflected in the key indicators MiMi tracks each month.”
The national MiMi value is currently 73.3, indicating a weak housing market for most of the U.S. and showing a very slight decline (-0.19%) from July to August and a 3-month decline of (-0.47%). The national housing market has improved 4.09% in the past quarter, according to the index. The country’s all-time high of 121.9 was in June 2008, with the low being 59.8 in September 2011, when the market was at its weakest.
The nation has seen a 22.6 % improvement since its bottom. Thirteen of 50 states and the District of Columbia have values in the stable range, with North Dakota (96.1) the District of Columbia (93.5) and Wyoming (91.0) leading the nation.
Nevada ranked as the second most improving state for the month, up 0.95%, trailing only Michigan, which saw a 1.01% increase. Las Vegas led the country in foreclosures for more than five years during the housing downturn, making the top position Las Vegas attained for stabilizing home markets for the month in the Freddie Mac index that much sweeter.
Colorado (+0.94%), Kentucky (+0.82%) and Rhode Island (+0.72%) followed the two states for improvement on the scale. On a year-over-year basis, the most improving states were Nevada (+20.51%), Illinois (+12.16%), Florida (+11.75%), California (9.15%) and South Carolina (+8.01%).
The index showed that in August, 18 of the 50 states improved for three months. A year ago every state and the District of Columbia, and every metro area was showing an improving three month trend.