In February's report, annual home-price growth capped off 2024 at 3.4%, a lower growth rate than during the post-recession recovery in 2011. Inventory levels have surged by 22%, the highest since mid-2020, particularly in Southern states. Andy Walden forecasts that an additional 15% of markets would see inventories normalize. However, while the Midwest and Northeast struggle to keep pace with inventory growth, they emerge as significant areas for home-price increase. Simultaneously, an increase in mortgage delinquencies, especially within FHA and VA loans, presents ongoing challenges, even as foreclosures hit record lows post-pandemic.
Annual home-price growth in 2024 ended at 3.4%, with significant inventory improvements in Southern states, while Midwest and Northeast markets lagged.
Despite the improvement in inventory, mortgage delinquencies, particularly for FHA and VA loans, have increased, indicating ongoing challenges in the housing market.
While foreclosures have fallen to record lows, particularly since the pandemic, the rising delinquency rates reflect a complex landscape that varies by loan type.
Andy Walden highlighted the contrasts in market performance, noting 18 of the 20 strongest price growth markets are in inventory-starved Midwest and Northeast regions.
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