Mid-Sized U.S. housing market illustrates unsteady recovery

The June 2011 Altos Research Mid-Cities Report, which analyzes trends in mid-level markets, recently found 19 of the 21 markets showed pricing strength, but no strong trends in growth or decline.

The median price for a home increased 1.11 percent in May from April, and both the 7-day and 90-day averages in the mid-cities composites are trending upward for median prices and inventory. According to the report, 7-day trends are early indicators of a shifting market.

The markets with the biggest increases in median prices were Orlando at 7.39 percent and Boise at 5.88 percent. Only two markets showed a price decrease: Honolulu at -0.70 percent and Dover at -0.31 percent. The report also found that over the past three months, inventory of houses has increased 2.28 percent in the mid-sized markets, compared to 3.17 percent nationally.

According to the Home Buying Institute weekly Housing Market Roundup, housing starts in the United States rose 3.3 percent in May 2011, a good sign for the market. Also showing signs of life in the market, the two-month decline in mortgage rates ended in mid-June, as it rose from 4.49 to 4.5 percent. However, the Case-Shiller/S&P index found national home prices fell 33 percent since their peak in 2006- a strong indicator of the uphill battle the market is facing. 

More News