Housing Prices - midwest — Banking Strategist

HOUSING PRICES - MIDWEST

(Click on an image to open larger view)

MINNEAPOLIS MSA

HPI Price Walk:

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

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

Trough to COVID: Home prices surging again; up 6.0% annualized.

COVID to Fed Tightening: Home prices surge 11.9% annualized.

Fed Tightening: Home prices rise 1.2% annualized.

Fed Pause to Current: Home prices fall (5.5)% annualized.

  
MINNEAPOLIS: HOME AFFORDABILITY

 HOME AFFORDABILITY

Home Affordability is lower in cost than U.S. averages.

Home "P/E" Ratio = 2.8X.
 Median home purchase is 2.8X median family income compared to 4.2X for U.S.; takes ~2.8 years of a Minneapolis area family's income to earn the sale price of the median priced home compared to ~4.2 years on average across the U.S.

NAHB HOI Index = 59.5%.
 59% of families can afford median priced home (NAHB HOI)

CHICAGO MSA

HPI Price Walk:

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

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

Trough to COVID: Home prices surging again; up 4.3% annualized.

COVID to Fed Tightening: Home prices surge 11.3% annualized.

Fed Tightening: Home prices rise 5.7% annualized.

Fed Pause to Current: Home prices fell (1.0)% annualized.

  
CHICAGO: HOME AFFORDABILITY

 HOME AFFORDABILITY

Home Affordability is significantly lower in cost than U.S. averages.

Home "P/E" Ratio = 2.8X.
 Median home purchase is 2.8X median family income compared to 4.2X for U.S.; takes ~2.8 years of a Chicago area family's income to earn the sale price of the median priced home compared to ~4.2 years on average across the U.S.

NAHB HOI Index = 52.0%.
 52% 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 COVID: Home prices surging again; up 3.9% annualized.

COVID to Fed Tightening: Home prices surge 13.5% annualized.

Fed Tightening: Home prices rise 5.2% annualized.

Fed Pause to Current: Home prices fell (2.1)% annualized.

  
CLEVELAND: HOME AFFORDABILITY

 HOME AFFORDABILITY

Home Affordability is significantly lower in cost than U.S. averages.

Home "P/E" Ratio = 2.0X.
 Median home purchase is 2.0X median family income compared to 4.2X for U.S.; takes ~2.0 years of a Cleveland area family's income to earn the sale price of the median priced home compared to ~4.2 years on average across the U.S.

NAHB HOI Index = 71.3%.
 71% 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 COVID: Home prices surging again; up 7.8% annualized.

COVID to Fed Tightening: Home prices surge 13.7% annualized.

Fed Tightening: Home prices rise 3.1% annualized.

Fed Pause to Current: Home prices fell (0.3)% annualized.

  
DETROIT: HOME AFFORDABILITY

 HOME AFFORDABILITY

Home Affordability is significantly lower in cost than U.S. averages.

Home "P/E" Ratio = 2.3X.
 Median home purchase is 2.3X median family income compared to 4.2X for U.S.; takes ~2.3 years of a Detroit area family's income to earn the sale price of the median priced home compared to ~4.2 years on average across the U.S.

NAHB HOI Index = 66.4%.
 66% of families can afford median priced home (NAHB HOI)