Monthly Barometer Gauges Housing Health

Every month, Trulia’s Housing Barometer measures the real-estate recovery based on construction data from the U.S. Census Bureau, existing-home sales numbers from the National Association of Realtors, and foreclosure statistics from LPS First Look. The barometer compares current data to where it was at its bottom and at its pre-bubble normal to determine how much progress has been made toward recovery. According to June’s report, the housing market is 32 percent back to normal, which is a 10 percent improvement over last year but down from May. The month-over-month drop was due largely to a decline in existing-home sales. Available for-sale inventory has tightened in many housing markets across the country, which contributed to slower sales during the month. But, though falling inventory slowed sales, it is also an indicator that the market is recovering. Construction of new homes was up 7.0 percent from the previous month and 24 percent from the year before. Also, the foreclosure rate is 34 percent back to normal, after a slight increase in the number of mortgages that were either delinquent or in foreclosure. More here.

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