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 61% recovering only portion of price losses; or 6.0% annualized.

Current from Peak: Home prices have below peak by <1%.

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 147% recovering all price losses; or 11.6% annualized.

Current from Peak: Home prices surpass peak by 8%.

Trends in Yearly Home Prices:  Moderate rises in home prices prior to Great Recession. Significant declines in home prices during Great Recession. Strong bounce-back spike in home prices followed by moderate price gains.

Trends in Yearly Home Prices: Moderate rises in home prices prior to Great Recession. Significant declines in home prices during Great Recession. Strong bounce-back spike in home prices followed by moderate price gains.

HPI Tiers:   All price tiers show strong increases. All price tiers remain below pre-recession peaks. It is worth noting the price break out for the low-tier - and the recent drop in home prices for the high-tier.

HPI Tiers:

All price tiers show strong increases. All price tiers remain below pre-recession peaks. It is worth noting the price break out for the low-tier - and the recent drop in home prices for the high-tier.

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

Home "P/E" ratio = 2.8X. Median home purchase is 2.8X median family income compared to 3.7X for U.S.

HOI = 73.8%. ~74% of families can afford median priced home (NAHB HOI).

HPI vs. CPI:   Pre-recession price run-up moderate and steady. However, steep and sustained period of decreasing home prices. In recent years, average home values have finally risen sufficiently to gain value relative to CPI inflation measure.

HPI vs. CPI:

Pre-recession price run-up moderate and steady. However, steep and sustained period of decreasing home prices. In recent years, average home values have finally risen sufficiently to gain value relative to CPI inflation measure.


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 38% recovering only portion of price losses; or 3.8% annualized.

Current from Peak: Home prices remain (16)% 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 104% recovering nearly all of price losses; or 10.4% annualized.

Current from Peak: Home prices remain (11)% below peak.

Trends in Yearly Home Prices:  Moderate rises in home prices prior to Great Recession. Significant declines in home prices during Great Recession. Strong bounce-back spike in home prices followed by modest price gains.

Trends in Yearly Home Prices: Moderate rises in home prices prior to Great Recession. Significant declines in home prices during Great Recession. Strong bounce-back spike in home prices followed by modest price gains.

HPI Tiers:   High and mid price tiers show modest increases. The low price tier is starting to exhibit stronger price performance. All price tiers remain well below pre-recession peaks.

HPI Tiers:

High and mid price tiers show modest increases. The low price tier is starting to exhibit stronger price performance. All price tiers remain well below pre-recession peaks.

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

Home "P/E" ratio = 3.0X. Median home purchase is 3X median family income compared to 3.7X for U.S.

HOI = 61.0%. 61% of families can afford median priced home (NAHB HOI).

HPI vs. CPI:   Pre-recession price run-up moderate and steady. However, steep and sustained period of decreasing home prices. Since 2000, average home values have lost significant value relative to CPI inflation measure. Recent increases remain below U.S. averages. Chicago MSA remains with a significant level of homes with negative equity (per CoreLogic report = ~10% of all homes with mortgages are underwater).

HPI vs. CPI:

Pre-recession price run-up moderate and steady. However, steep and sustained period of decreasing home prices. Since 2000, average home values have lost significant value relative to CPI inflation measure. Recent increases remain below U.S. averages. Chicago MSA remains with a significant level of homes with negative equity (per CoreLogic report = ~10% of all homes with mortgages are underwater).


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 91% but recovering only portion of price losses; or 8.0% annualized.

Current from Peak: Home prices remain (3)% below peak.

 
Trends in Yearly Home Prices:  Modest rises in home prices prior to Great Recession. Significant declines in home prices during Great Recession. Strong bounce-back spike in home prices followed by moderate price gains.

Trends in Yearly Home Prices: Modest rises in home prices prior to Great Recession. Significant declines in home prices during Great Recession. Strong bounce-back spike in home prices followed by moderate price gains.

HPI vs. CPI:   No noticeable pre-recession price run-up. However, steep and sustained period of decreasing home prices. Since 2000, average home values have lost significant value relative to CPI inflation measure. Recent increases are near U.S. averages.

HPI vs. CPI:

No noticeable pre-recession price run-up. However, steep and sustained period of decreasing home prices. Since 2000, average home values have lost significant value relative to CPI inflation measure. Recent increases are near U.S. averages.

HPI Tiers:    There is no tiered HPI data available for this MSA.

HPI Tiers:

There is no tiered HPI data available for this MSA.

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

Home "P/E" ratio = 2.4X. Median home purchase is +2X median family income compared to 3.7X for U.S.

HOI = 68.2%. ~68% 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 29% recovering only portion of price losses; or 3.4% annualized.

Current from Peak: Home prices below pre-recession peak by 2%.

 
Trends in Yearly Home Prices:  Modest rises in home prices prior to Great Recession. Significant declines in home prices during Great Recession. Followed by moderate price gains.

Trends in Yearly Home Prices: Modest rises in home prices prior to Great Recession. Significant declines in home prices during Great Recession. Followed by moderate price gains.

HPI vs. CPI:   No noticeable pre-recession price run-up. However, steady and sustained period of decreasing home prices. Since 2000, average home values have lost significant value relative to CPI inflation measure. Recent increases are well below U.S. averages.

HPI vs. CPI:

No noticeable pre-recession price run-up. However, steady and sustained period of decreasing home prices. Since 2000, average home values have lost significant value relative to CPI inflation measure. Recent increases are well below U.S. averages.

HPI Tiers:    There is no tiered HPI data available for this MSA.

HPI Tiers:

There is no tiered HPI data available for this MSA.

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

Home "P/E" ratio = 2.0X. Median home purchase is 2X median family income compared to 3.7X for U.S.

HOI = 80.2%. 80% of families can afford median priced home (NAHB HOI).