HOUSING PRICES - MIDWEST

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MINNEAPOLIS MSA

HPI Price Walk - All Tiers:

2000 to Peak: Home prices rose 71%, or 8.1% annualized.

Peak to Trough: Decline of 38%, or (10.6)% annualized.

Trough to Current: Home prices increasing - up 65% recovering only portion of price losses; or 6.2% annualized.

Current from Peak: Home prices are above peak by 2%.

HPI Price Walk - Low Tier:

2000 to Peak: Home prices rose 88%, or 9.7% annualized.

Peak to Trough: Decline of 56%, or (17.4)% annualized.

Trough to Current: Home prices increasing - up 154% recovering all price losses; or 11.7% annualized.

Current from Peak: Home prices surpass peak by 11%.

Home Affordability: Home affordability is much better or less costly than U.S. averages.

Home "P/E" ratio = 2.6X. Median home purchase is 2.6X median family income compared to 3.7X for U.S.

HOI = 78.6%. ~78% of families can afford median priced home (NAHB HOI).


CHICAGO MSA

HPI Price Walk - All Tiers:

2000 to Peak: Home prices rose 69%, or 7.9% annualized.

Peak to Trough: Decline of 39%, or (9.0)% annualized.

Trough to Current: Home prices slowly rising - up 40% recovering only portion of price losses; or 4.0% annualized.

Current from Peak: Home prices remain (14)% below peak.

HPI Price Walk - Low Tier:

2000 to Peak: Home prices rose 84%, or 8.5% annualized.

Peak to Trough: Decline of 54%, or (16.5)% annualized.

Trough to Current: Home prices rising - up 107% recovering nearly all of price losses; or 10.3% annualized.

Current from Peak: Home prices remain (10)% below peak.

Home Affordability: Home affordability is better or less costly than U.S. averages.

Home "P/E" ratio = 2.7X. Median home purchase is 2.7X median family income compared to 3.7X for U.S.

HOI = 68.1%. 68% of families can afford median priced home (NAHB HOI).


DETROIT MSA

HPI Price Walk:

2000 to Peak: Home prices rose only 27%, or 4.1% annualized.

Peak to Trough: Decline of 49%, or (12.7)% annualized.

Trough to Current: Home prices rising - up 95% but recovering only portion of price losses; or 8.1% annualized.

Current from Peak: Home prices remain (1)% below peak.

Home Affordability: Home affordability is significantly better or less costly than U.S. averages.

Home "P/E" ratio = 2.1X. Median home purchase is +2X median family income compared to 3.7X for U.S.

HOI = 81.4%. ~81% of families can afford median priced home (NAHB HOI).


CLEVELAND MSA

HPI Price Walk:

2000 to Peak: Home prices rose only 23%, or 3.3% annualized.

Peak to Trough: Decline of 24%, or (4.8)% annualized.

Trough to Current: Home prices slowly rising - up 31% recovering only portion of price losses; or 3.5% annualized.

Current from Peak: Home prices below pre-recession peak by (0)%.

Home Affordability: Home affordability is significantly better or less costly than U.S. averages.

Home "P/E" ratio = 1.7X. Median home purchase is 1.7X median family income compared to 3.7X for U.S.

HOI = 84.5%. ~84% of families can afford median priced home (NAHB HOI).