Las Vegas Tops Housing Markets Recovery
On a year-over-year basis the most improving metropolitan housing market in the U.S. was Las Vegas (+20.98%), according to the latest Freddie Mac Multi-Indicator Market Index. The index shows the U.S. housing market is strongly continuing to stabilize with nearly half of the markets it tracks showing positive momentum through September.
Chicago (+13.81%) placed second for improvement in the study, followed by Miami, (+10.95%), Riverside (+10.38%) and Denver (+8.61%). Las Vegas led the nation in foreclosures five straight years and has sustained improving trends in the single family home sector for most of the last year. Condominium and town home sales are also improving in Las Vegas even as home values rise.
The national MiMi value currently stands at 74.4%, indicating a weak housing market for most of the country, but shows a slight improvement (+0.51%) from August to September. The high was 121.9% hit in June 2008 and its low was 59.8% in September 2011 when the housing market was at the bottom.
The most improving states on a month-over-month basis were Nevada (+2.06%), Colorado (+2.04%), Florida (+1.38%), Alabama (+1.29%) and Kentucky (+1.10%) for September. On a year-over-year basis, the most improving states were Nevada (+18.95%), Illinois (+10.52%), Florida (+8.57%), Rhode Island (7.44%) and Ohio (+7.10%). The same five states were also some of the hardest hit states in the real estate downturn.
Home sales slowed during October in the Las Vegas region, according to the Greater Las Vegas Association of Realtors, but are expected to rebound erratically over the winter months before sustaining additional improvement in the spring. Las Vegas tops housing markets in the U.S. on an year to year basis, but on a month-over-month basis Denver (+2.44%) took the top slot, with Las Vegas (+2.27%) trailing in the second spot. Miami (+1.60%) took third, followed by Orlando (+1.54%) and Birmingham (+1.19%).
However, only fourteen of the 50 states plus the District of Columbia have MiMi values in a stable range, with North Dakota (96.5%) leading all of the states due to a shale oil boom that has attracted thousands of workers to the region. The District of Columbia (94.3%) ranked second, with Wyoming (91.1%), Montana (91.0%) and Hawaii (89.3) ranking in the top five. On a year-over-year basis the most improving metro is Las Vegas (+20.98%).
Chicago (+13.81%) ranked a distant second, followed by Miami, (+10.95%), which has experienced the longest lasting sustained recovery in the U.S. housing market and Riverside (+10.38%).
Almost half (21) of the 50 metros the Freddie Mac study tracks showed an improving three month trend. A year ago, every state and Washington D.C., and 49 of the top 50 metro areas showed an improving quarterly trend.