There’s still a lot of equity-building potential for homeowners. Home values are still rising in some markets. Freddie Mac’s Multi-Indicator Market Index (MiMi) stands at 86, which the mortgage giant says is on the “outer edge of its historic benchmark range of housing activity.”
Home values incredibly have room to run
In Florida, the Index is a bit better coming in at 86.7 from the latest reading. An index score of 100 indicates a housing market that equals its historic, long-term average.
However, Freddie also discovered that Florida ranked second behind Nevada for most improved state year-to-year. In Fla., the index rose 11.58% in comparison with Nevada’s 11.74%. Freddie Mac’s study discovered it “in range” of its historically stable housing market and “improving.” Two Florida cities – Orlando and Tampa – rank in the top five nationally for “most improved.”
MiMi assesses each market – national, state and selected metro areas – relative to its own long-term stable range by investigating home purchase applications, payment-to-income ratios (changes in home purchasing power based on house prices, rates on mortgages and household income), proportion of current mortgage payments in each market and the local employment picture.
The index nationwide has climbed 45% since its all-time low set in 2010. It continues to trail below its historic benchmark normalized of 100 and far from its high of 121.7.
“The purchase applications indicator is up nearly 19% from last year, indicating strong housing demand and a market that’s poised to close out the best year in home sales in a decade,” says Len Kiefer, Freddie Mac’s deputy chief economist. “National home prices have surpassed their pre-recession nominal peak with about half of states still below their pre-recession peak. Factoring in low mortgage rates and modest income gains, house prices still have some room to run, as indicated by the MiMi payment-to-income indicator which is nearly 33% below its historic benchmark.”
Forty-one of the 50 states, as well as the District of Columbia, have MiMi values within range of benchmark averages.
MiMi ranking for top states
Utah (100.4)
Colorado (97.8)
Hawaii (97)
Idaho (96.7)
North Dakota (95.8)
Oregon at (95.8)
MiMi state ranking for most improved year-to-year
Nevada (+11.74%)
Florida (+11.58%)
Massachusetts (+11.35 percent)
Mississippi (+9.76%)
New Jersey (+9.61%)
MiMi metro ranking for most improved year-to-year
Orlando, Fla. (+17.85 percent)
Worcester, Mass. (+14.49%)
Tampa, Fla. (+14.36 percent)
Chattanooga, Tenn. (+14.20 %)
Dallas, Texas (+13.89%)
A rise in mortgage rates likely will dampen affordability and need for home sales the coming year, Kiefer adds.
“Though we’ve come far, as indicated in the national statistics, housing still has significant room for improvement in many markets across the country as indicated by the fact that 24 out of the top 100 metros are still more than 20 percent below their historic benchmark, as measured by MiMi,” Kiefer says.
So if you have been thinking about selling and confused by all the different websites that spit our a home value in a mil-second. Give us a call at 813-300-7116 or simply click here and tell us about your home. We will complete a market analysis for you. We can then email it to you, or come sit down with you and go over the value in person.