The Multi-Indicator Market Index measured by Freddie Mac looks at recoveries in real estate by comparing recent data versus normal data over long periods for local residential housing and condominium markets nationwide. The index follows application data for home purchases, payment versus annual income ratios, on-time payments for mortgage loans, and the local employment market in all 50 states as well as the top 100 metro markets.
Recent findings indicate the real estate market is very healthy, rebounding on a path that has reached an outer range of stability. Twenty-nine out of fifty states currently rank in stable range, as well as forty-seven of the metro markets. Len Kiefer, Freddie Mac’s deputy chief economist believes real estate markets nationwide are once again hitting their long-term benchmark averages.
Mr. Kiefer says, “The nation's housing market continues to improve, riding the wave of the best year in home sales since 2007. With the MiMi purchase applications indicator at its highest level in more than seven years, we expect home sales to remain strong. Low mortgage rates are fueling the recovery across the country. Places like Denver, Austin, and Salt Lake City, and most markets in California, are seeing robust home purchase demand and, in many cases, double-digit growth over last year.”
Even as these markets show favorable data, there is always room for additional improvement and growth in the income sector will have to continue to sustain the gains.