Overall, it appears the mortgage delinquencies associated with the hurricane season have not translated into an increase in foreclosure activity, with the U.S. foreclosure rate falling in each of the last 21 months.
January 11, 2018
This week marks the release of the January 2018 Housing Tides Report™, featuring an update to the Housing Tides Index™, an objective and sophisticated approach to quantifying and comparing the health of U.S. housing markets.
Understanding the health of a housing market and its relationship to other top markets requires an aggregated, comprehensive view of the industry. The Housing Tides Index provides a succinct monthly measure of market health across the top 41 U.S. markets. Referencing 18 market indicators ranging from unemployment rates and housing permits to rental vacancy and mortgage foreclosure rates, the Tides Index helps users understand exposure at a deeper level than is currently possible.
Driving the increase in the Index this month was an improvement in the ratio between employment gains and U.S. housing permits. The U.S. economy added 2.35M jobs in the year ending October 2017 while homebuilders gained approval for 1.21M new homes. This makes for a ratio of 0.51 homes per job added, just on the bottom end of our target healthy range. Still, anecdotal evidence of housing shortages, increases in home prices that continue to outpace wage and general price inflation, and the tight supply of housing for sale (3.1 months of supply in November) all demonstrate that housing markets would better satisfy pent-up demand with a ratio closer to one new home per job added.
- After reaching its highest level in 17 years in…