The Wall Street Journal runs some numbers to determine where there are signs of strength and weakness in the national housing market.
The paper analyzed data in 28 major metropolitan areas to determine “overall strength”, based on months of available supply of homes listed for sale, change in inventory since last year, average price change during that time, employment outlook over the next two years, and percentage of loans overdue.
The Boston metropolitan area?
Overall? We get a “moderate”.
Change in housing inventory, past 12 months? Down 10.9% (they include single family, condos, and townhouses in total)
Months supply: 6.7
Price change: -8.5%
Loan payments overdue: 3.6%
Employment outlook: Very weak
VERY WEAK??? Like I don’t have enough to worry about?
The loan payments overdue is an encouraging sign, though. We’ve got the sixth lowest overall, out of 28 MSAs. And, we’ve had the biggest drop in inventory out of all 28 areas.
For price changes, we’re right in the middle at #14, meaning we’re doing better than half because prices have dropped more (meaning, housing has become more affordable) or we’re doing worse than half because prices hae dropped more (meaning, owners are losing their shirts).
Source: Where Housing Is Headed – By James R Hagerty, The Wall Street Journal