The November Home Data Index™ (HDI™) report is showing continued quarter-over-quarter growth (QOQ) in the South and revealing significant home price appreciation in Memphis.
In the South, November HDI data has Memphis, Tennessee holding the top spot for largest increase in QOQ growth up from 0.62 percent in October to 2.83 percent, as well as year-over year growth at 1.93 percent. Additionally, Memphis is in the top 15 highest performing metros overall.
Home price appreciation in Memphis may be attributed to the Tennessee Housing Development Agency’s (THDA) efforts to promote homeownership by supporting local governments and lenders to develop low-cost mortgages and enable down payment assistance to prospective income-eligible home buyers.
THDA’s post-Great Recession endeavors addressed the rental market saturation in Memphis, along with high-rental prices that impacted local residents’ ability to save for down payment in order to purchase a home. To date, the THDA’s statewide home loan efforts total $300 million, which may be connected to the substantial home appreciation growth in Memphis.
“Memphis’ momentous growth demonstrates how a housing finance agency can work to help residents become homeowners, but more importantly, how those efforts can build a stronger community that benefits from increased home value in the process,” said Clear Capital CEO and Co-Founder Duane Andrews.
Other MSAs in the South experienced a drop in QOQ growth from October with Tampa, Florida falling to 0.26 percent from 1.73 percent, Jacksonville, Florida decreasing to 0.49 percent from 1.59 percent and Orlando, Florida dropping to 0.46 percent from 1.30 percent. Apart from Florida MSAs curtailing QOQ growth, Dallas, Texas also fell to 0.65 percent from 1.37 percent in October.
As a whole, the Southern region’s QOQ price growth at 0.8 percent is neck and neck with the Midwest at 0.6 percent and the Northeast at 0.7 percent. The West continues to outperform all regions with QOQ price growth holding steady at 1.3 percent.
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About the Clear Capital® Home Data Index (HDI) Market Report
The Clear Capital HDI Market Report provides insights into market trends and other leading indices for the real estate market at the national and local levels. A critical difference in the value of the HDI Market Report is the capability of Clear Capital to provide more timely and granular reporting than nearly any other home price index provider.
Clear Capital® HDI Methodology
- Generates the timeliest indices in patent pending rolling quarter intervals that compare the most recent four months to the previous three months. The rolling quarters have no fixed start date and can be used to generate indices as data flows in, significantly reducing the multi-month lag time experienced with other indices.
- Includes both fair market and institutional (real estate owned) transactions, giving equal weight to all market transactions and identifying price tiers at a market specific level. By giving equal weight to all transactions, the HDI is truly representative of each unique market.
- Results from an address-level cascade create an index with the most granular, statistically significant market area available.
- Provides weighted repeat sales and price-per-square-foot index models that use multiple sale types, including single-family homes, multi-family homes, and condominiums.
The information contained in this report is based on sources that are deemed to be reliable; however no representation or warranty is made as to the accuracy, completeness, or fitness for any particular purpose of any information contained herein. This report is not intended as investment advice, and should not be viewed as any guarantee of value, condition, or other attribute.