National Housing Market Summary 1st Quarter 2017

June 27, 2017  

National Housing Market Summary 1st Quarter 2017

HUD’s Office of Policy Development and Research has released its analysis of the national housing market with first quarter statistics for 2017. The report contains updates on production, marketing, housing performance, homeownership, and affordability, provides comparisons with previous quarters, and places the data in a larger historical context. The analysis indicates that during the first quarter of 2017, the housing market continued to improve.

Key Findings

• Construction starts on single-family homes were up 1 percent from the fourth quarter of 2016 and up 7 percent from the previous year. Multifamily housing starts were down 4 percent from the fourth quarter but up 11 percent from the previous year.
• Purchases of new single-family homes were up 8 percent from the fourth quarter and 17 percent from the previous year.
• The NAR Composite Housing Affordability Index decreased from 166.0 in the previous quarter to 160.3, showing a decline of 3 percent in the ability to purchase a median-priced home. HUD’s Rental Affordability Index rose from 117.3 to 117.9 in the first quarter, indicating an increase of 0.5 percent in the ability to rent a median-price home.
• The overall mortgage delinquency rate fell from 4.80 percent in the fourth quarter to 4.71 percent. The FHA loan delinquency rate fell to its lowest level since 1997, at 8.09 percent. Foreclosure starts fell by 10 percent from the fourth quarter and 20 percent over the last year.
• The U.S. homeownership rate decreased from 63.7 percent in the fourth quarter to 63.6 percent. The homeownership rate reached a low point of 62.9 in the second quarter of 2016.

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