Housing Market Conditions Improve Again Across Eighth District in Third Quarter 2014

ST. LOUIS – Housing market conditions continued to improve during the third quarter of 2014 across the seven states that comprise the St. Louis Fed's Eighth District, with mortgage delinquencies declining in most regions, 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 breaks down data for the District’s four main metropolitan statistical areas (MSAs): the areas around Little Rock, Ark.; Louisville, Ky.; Memphis, Tenn.; and St. Louis.

Housing Prices

As of the second quarter 2014, the HMC report now features CoreLogic Housing Price Index data, which has been added to the existing Federal Housing Finance Administration (FHFA) data to provide a more complete snapshot of current home price conditions.

FHFA

Based on Federal Housing Finance Agency (FHFA) data, all of the Eighth District’s states saw an increase in house prices for the third quarter of 2014, which also marked the second time in a row that all states saw a quarterly increase since the third quarter of 2013. Illinois reported the largest quarter over quarter increase of 1.7 percent, as well as the largest year over year increase of 5.4 percent. All states reported a year over year increase, with Tennesee reporting the second largest increase of 5.2 percent. For the Eighth District MSAs, all regions except Little Rock reported a quarter-over-quarter increase in house prices, with the St. Louis MSA showing the largest increase of 1.4 percent. Year over year, all MSAs except Little Rock reported an increase, with the Memphis MSA seeing the largest increase of 4.3 percent. According to the FHFA Housing Price Index, Louisville MSA house prices have surpassed their pre-recession highs.

CoreLogic

Based on CoreLogic data, housing prices were also up in all Eighth District states on a quarter-over-quarter basis, with Mississippi reporting the largest gain of 1.8 percent. Year-over-year, prices were higher in all states except Arkansas, with Tennessee reporting the largest increase of 4.4 percent and Kentucky coming in second at 3.7 percent. All four MSAs except Memphis reported a quarter-over-quarter increase in house prices, with the Louisville MSA showing the largest increase of 0.8 percent. Year-over-year, prices also were higher in all MSAs except Little Rock, which dipped 0.8 percent. Meanwhile, year over year prices in the MSAs rose except in Little Rock rose, with St. Louis up the highest at 4.6 percent.

Eighth District 3Q 2014 House Price Performance - FHFA

Eighth District 3Q 2014 House Price Performance - CoreLogic

Mortgage Delinquencies

In the third quarter, the percentage of seriously delinquent mortgages (delinquent 90 days or more, or in foreclosure) fell in five of seven Eighth District states and its four main MSAs. In Mississippi and Missouri, quarter-over-quarter delinquencies rose by 7 basis points and 3 basis points, respectively. Seriously delinquent levels remained below the national average of 4.07 percent in Kentucky and Missouri, while levels in Arkansas, Illinois, Indiana and Mississippi remained above the national average. Meanwhile, the Louisville and St. Louis MSAs remained below the national average, while the Little Rock and Memphis MSAs remained above.

Eighth District 3Q 2014 Seriously Delinquent Mortgages

* 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.