Housing Market Conditions Continue To Improve During First Quarter 2014


ST. LOUIS – Housing market conditions continued to improve across states that comprise the St. Louis Fed's Eighth District during the first quarter of 2014, with mortgage delinquencies declining for the fourth quarter in a row and home prices rising slightly in all states except one, 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 Eighth District, which covers the states of Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee.* The report also includes data for the District’s four main Metropolitan Statistical Areas (MSAs) in Little Rock, Ark.; Louisville, Ky.; Memphis, Tenn. and St. Louis, Mo.

Housing Prices

On a quarter-over-quarter basis, as well as a year-over-year basis, housing prices were up in all Eighth District states except Kentucky, with Mississippi showing the largest quarter-over-quarter gain of 2.8 percent and Tennessee the largest year-over-year gain of 5.9 percent. In comparison, prices across the nation were up an average 1.4 percent and 7 percent, respectively. In Kentucky, prices dipped 0.3 percent from the fourth quarter of 2013 to the first quarter of 2014, and 0.1 percent from first quarter 2013 to first quarter 2014. In the MSAs, prices were up in Little Rock, Memphis and St. Louis. While prices in the Louisville MSA were down 1.1 percent on a quarter-over-quarter basis, they rose 0.6 percent on a year-over-year basis.

Eighth District 1Q 2014 House Price Performance

over Quarter
over Year
U.S. + 1.4% + 7.0%
AR + 1.6% + 0.9%
IL + 0.6% + 5.1%
IN + 0.9% + 4.2%
KY - 0.3% - 0.1%
MO + 2.1% + 5.8%
MS + 2.8% + 4.1%
TN + 1.8% + 5.9%
Little Rock + 0.2% + 0.7%
Louisville - 1.1% + 0.6%
Memphis + 0.7% + 1.9%
St. Louis + 0.1% + 0.5%


Mortgage Delinquencies

For the fourth quarter in a row, the percentage of seriously delinquent mortgages (delinquent 90 days or more, or in foreclosure) fell in all Eighth District states and its four main MSAs. In Arkansas, Kentucky, Missouri and Tennessee, delinquencies fell under the national average of 4.49 percent, while Illinois, Indiana and Mississippi remained above the national average. Meanwhile, the Louisville and St. Louis MSAs remained below the national average, at 4.21 percent and 3.64 percent respectively. The Little Rock and Memphis MSAs remained above the national average, at 5.02 percent and 7.35 percent, respectively.

Eighth District 1Q 2014 Seriously Delinquent Mortgages

State/MSA Percent Seriously
Change in
basis points (bps)
U.S. 4.49% - 50 bps
AR 4.60% - 47 bps
IL 5.48% - 73 bps
IN 4.89% - 50 bps
KY 4.06% - 32 bps
MO 3.22% - 32 bps
MS 6.55% - 53 bps
TN 4.29% - 40 bps
Little Rock 5.02% - 43 bps
Louisville 4.21% - 32 bps
Memphis 7.35% - 60 bps
St. Louis 3.64% - 37 bps


House Prices Stay Above 2011 Lows, Below 2007 Peaks

While house prices continued to climb during the first quarter of 2014 from lows reached in 2011, they remained below their 2007 peaks.

From their respective 2011 lows, prices were up 15.5 percent nationally, while Arkansas and Indiana prices were both up 10 percent, the highest in the Eighth District. Meanwhile, prices in Illinois were up 7.8 percent; Kentucky, up 2 percent; Mississippi, up 6.7 percent; Missouri, up 8.9 percent and Tennessee, up 9.8 percent. In the MSAs, prices were also up slightly from their respective 2011 lows, with Little Rock up 3.2 percent; Louisville, up 2.6 percent; Memphis, up 3.2 percent and St. Louis, up 0.6 percent.

Prices still remained below 2007 peaks, with national prices down 14.1 percent. In comparison, prices were down 5.5 percent in Arkansas; 26.4 percent in Illinois; 2.7 percent in Indiana, 6.9 percent in Kentucky; 10.7 percent in Mississippi; 12.5 percent in Missouri and 8.7 percent in Tennessee. Across the MSAs, prices were down 0.6 percent in Little Rock, 3.4 percent in Louisville, 11.6 percent in Memphis and 11.3 percent in St. Louis.


* 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.

Contact Us


Adriene Dempsey


Suzanne Jenkins


Laura Girresch


Maria Hasenstab


Laura Taylor