National Housing Market Summary 1st Quarter 2020

June 30, 2020  

National Housing Market Summary 1st Quarter 2020

HUD's Office of Policy Development and Research has released its analysis of the national housing market during the first quarter of 2020. The report contains updates on housing construction and inventory; sales, prices, and affordability; housing finance and investment; and homeownership and vacancy. The report noted that overall, housing market indicators showed progress in the first quarter of 2020, but there were signs the restrictions implemented in mid-to-late March due to the coronavirus pandemic and the resulting economic tightening were beginning to impact some housing indicators.

Key Findings

• New construction increased for both single-family and multifamily housing. Housing starts on single-family homes rose 0.1 percent from the previous quarter and 12 percent from one year ago. Multifamily housing starts were up 12 percent from the previous quarter and 51 percent from the previous year.
• The listed inventory of homes for sale rose from the previous quarter for both new and previously owned (existing) housing. As compared to the fourth quarter of 2019, home purchases declined for new homes, but increased for existing homes.
• Annual house price gains increased in the first quarter, according to the seasonally adjusted Federal Housing Finance Agency and the CoreLogic Case-Shiller repeat-sales house price indices.
• The national homeownership rate increased for a third consecutive quarter, rising above its historic norm to 65.3 percent.
• The NAR Composite Housing Affordability Index showed that the affordability of purchasing a home rose for the third straight quarter, but HUD's Rental Affordability Index indicated that the affordability of renting a home declined in the first quarter.
• According to the Mortgage Bankers Association's National Delinquency Survey, the overall mortgage delinquency rate grew in the first quarter. ATTOM Data Solutions reported that newly initiated foreclosures increased, while completed foreclosures declined.

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