The number metropolitan areas with improving housing markets fell in April. Learn more about this and other real estate market trends.
Fewer metropolitan areas showed improving real estate market trends in May, according to data released yesterday by the National Association of Home Builders. The number fell from 273 in April to 258 in May, according to the NAHB/First American Improving Markets Index.
“Our industry’s progress on the road to recovery is being slowed by rising challenges related to the availability of credit, building materials, labor and lots for development, said Rick Judson, chairman of the NAHB.
The Improving Markets Index, or IMI, tracks three key real estate market trends, housing permit activity, employment and home prices. Nineteen metropolitan areas failed to sustain improvement in these metrics and were dropped from the May index, while four new markets were added to the list.
A downward trend in mortgage interest rates plays into the latest real estate market trends. Click here to learn more.
“While seasonal trends in home prices resulted in an overall decline in the IMI this month, the index remains at a very strong level and continues to represent markets in every state,” David Crowe, chief economist, said in a statement analyzing current real estate market trends. “The fact that over 70 percent of all U.S. metros are holding onto their spots on the improving list is definitely good news, and representative of the generally brightening outlook for housing markets nationwide.”
In related trends, the rate of new loans becoming seriously delinquent has fallen to its lowest level in six year, Lender Processing Service reported yesterday. The rate rises significantly for mortgages with negative equity, but has returned to pre-housing crisis rates for borrowers with home equity.
The “legacy” of foreclosures has helped depress home ownership rates. Click here to learn more about the lingering effects of foreclosures on real estate market trends.