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FreddieMac: Economic and Housing Market Outlook Compared to What a Healthy Housing Market Should Look Like
Date Published |
11/16/2012 |
Author |
Marja Hoek-Smit |
Theme |
|
Country |
United States |
FreddieMac’s recent data show that the US housing market is
healing. The S&P/Case- Shiller 20 city and the Federal Housing Finance
Agency’s purchase-only price indexes continue to show positive gains, home
sales were at a rate of almost 5 million for the first nine months of 2012, and
home-owner and rental vacancy rates have declined to 1.9 percent and 8.6
percent respectively. Interestingly, the Outlook compares these data with what
a healthy housing market should look like:
- Housing starts increasing to about 1.7 to 1.8 million
dwellings per year compared with 2.1 million in 2005.
- Home sales increasing to about 5 percent of the housing
stock, or about 6.5 to 7.0 million homes per year, compared with sales of
7 percent of the stock in 2005.
- U.S. house price appreciation rising gradually to about
3 percent per year compared to 11 percent of 2005.
- Vacancy rates easing further to about 1.7 percent on
for-sale homes and 8 percent for rental homes, down from peaks of about 3
percent in 2008 and 11 percent in 2009, respectively.
- Serious delinquency rates nearing 2 percent, down from
a peak of 9.5 percent in early 2010.
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