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Housing Market Continues to Improve

August 28, 2015
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HousingMarketImproveSince the big housing crash in 2008, America has been struggling in the uphill road to real estate recovery. There were trends of economic distress and significant foreclosures across the nation. In the last couple of years, however, we have begun to see the market turning around with improved growth in home sales and a stabilizing of employment on the rise. Families are in a better position to sell with gains in home values. There are a variety of measurements which can be utilized by Realtors® to help clients understand the current housing market. One resource to watch is the Leading Market Index, or LMI. This is provides a guide to gauge how housing markets are performing across the nation in major metropolitan areas.

The National Association of Home Builders (NAHB) compiles data from the Bureau of Labor Statistics, Freddie Mac, and the U.S. Census Bureau. The LMI is published each quarter, analyzing employment data, house price appreciations, and single-family housing permits. In the latest report covering the second quarter of the year, 75 of the 360 metro areas across the country have returned to or surpassed the last normal levels of economic and housing activity, reflecting positive growth. The nationwide LMI score rose up to 0.92, showing that we are at 92% of normal activity within these areas. In addition to this, 66% of the markets have shown improvement year over year.

Of the main elements reported in the LMI, home prices are showing the biggest recovery, with 345 markets returning to or exceeding their last normal level. 64 markets have met or exceeded their normal employment levels, and 26 markets have increased their housing permit levels. Nearly half the markets (173) are currently at or above 90%, reaching an all- time high within the LMI report. Two major markets in California are in the top 10 of the LMI report. San Jose is in at number 6 with an overall market rating of 1.10. Price application rates at 1.58, employment at ,1.02 and permits rate at 0.71. In Los Angeles, the overall rating is 1.09, with price appreciation at 1.79, employment rated at 0.96, and permits at 0.51.

Based on the latest LMI report, the NAHB feels confident that the remainder of 2015 will continue to experience strong growth. This is shaping up to be a positive year for home sales. When you are ready to sell or buy a home, myself and my team are ready to help you through the entire process. We make the business of real estate a pleasure for you to experience. Contact us today at (925) 634-7820, or by email at realestate@cecily.com.

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