U.S. Housing Market Conditions Report, 3rd Quarter 2009

From: HUD USER News

14 December 2009

Housing market conditions continued to show signs of stabilizing during the third quarter of 2009. Production and market indicators improved in this period, while housing affordability declined due to an increase in the median price of existing single-family homes sold, a rise in mortgage interest rates, and a decline in median family income. Although foreclosure starts remained the same as the previous quarter, newly initiated foreclosures fell for subprime loans, but rose for prime loans.

Key Findings:

Compared to the previous quarter:

o Single-family housing permits increased 13%; total housing permits were up 8%.

o Single-family housing starts increased 17%; total housing starts were up 9%.

o The median price of new homes ($206,100) was down 5%.

o Sales of new and existing single-family homes rose 10% and 11%, respectively.

o Inventories of new and existing homes dropped to an average months’ supply of 7.6 and 8.8, respectively.

o Multifamily builders took out 8% fewer permits; starts dropped 20%.

This analysis of housing production, marketing, affordability and interest rates, and the multifamily housing sector compares third quarter 2009 performance to both the previous quarter and the third quarter of 2008. The report also profiles economic and housing market activity in each of HUD’s 10 regions, and updates historical trends in national and regional housing markets. In addition to these data, this issue includes a feature article that casts an "Eye on Multifamily Housing Finance."

Learn More: www.huduser.gov/periodicals/ushmc.html

Download or order free print copies by phone at 800-245-2691, option 1.

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