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Eighth District House Prices Rise, Mortgage Delinquencies Fall in Second Quarter 2013


ST. LOUIS – Second quarter 2013 house prices continued to rise modestly while the number of seriously delinquent mortgages fell across the seven states that comprise the Federal Reserve's Eighth District compared with the same time last year, according to the St. Louis Fed’s latest Housing Market Conditions report.

The quarterly report provides a snapshot of housing market conditions in the U.S. and the states that comprise the Eighth District (Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee).

Year-over-Year Comparisons of House Price Changes

Tennessee reported the largest year-over-year house price increase in the Eighth District, at 4.7 percent, compared with an average national increase of 7.5 percent. Meanwhile, Arkansas house prices were up 2.7 percent; Illinois, up 3.6 percent; Indiana, up 3.2 percent; Kentucky, up 1.6 percent; Mississippi, up 1.7 percent and Missouri, up 3 percent.

Quarter-over-Quarter Comparisons of House Price Changes

From the first quarter of 2013 to the second quarter, house prices nationally were up 2.4 percent.  For the states in the Eighth District, house prices were unchanged in Arkansas and up 2 percent in Illinois, 0.8 percent in Indiana, 0.1 percent in Kentucky, 1 percent in Mississippi, 2 percent in Missouri and 2 percent in Tennessee.

House Prices Remain above 2011 Lows, below 2007 Peaks

While house prices continued to climb during the second quarter of 2013 from lows reached in 2011, they remained below their 2007 peaks. From their respective 2011 lows, prices were up 10.5 percent nationally, with Arkansas house prices up 9.6 percent.  Meanwhile, prices in Illinois were up 4 percent; Indiana, up 6.5 percent; Kentucky, up 4.5 percent; Mississippi, up 3.5 percent; Missouri, up 4.9 percent and Tennessee, up 6.3 percent.

However, prices remained below 2007 peaks, with national prices down 17.6 percent. In comparison, prices were down 5.8 percent in Arkansas, 28.7 percent in Illinois, 3.3 percent in Kentucky, 5.7 percent in Indiana, 13.2 percent in Mississippi, 15.7 percent in Missouri and 11.3 percent in Tennessee.

Seriously Delinquent Mortgages Decline

In the second quarter of 2013, seriously delinquent mortgages (90-plus days overdue or in foreclosure) continued to fall nationally and across all Eighth District states.

Nationally, seriously delinquent levels fell 62 basis points to an average 5.84 percent.  Arkansas, Kentucky, Missouri and Tennessee had levels below the national average, with Arkansas down 75 basis points to 5.48 percent; Kentucky down 39 basis points to 4.73 percent; Missouri down 26 basis points to 3.75 percent and Tennessee down 35 basis points to 4.97 percent.  Meanwhile, Illinois delinquencies were down 82 basis points to 7.59 percent, Indiana delinquencies were down 56 basis points to 5.9 percent and Mississippi delinquencies were down 66 basis points to 7.45 percent.


* Please note: While the Eighth District is comprised of the entire state of Arkansas and only parts of Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee, analysis is conducted on a statewide basis for each state's respective report.