David Berson, Bryan Jordan, and Ben Ayers of the Nationwide Economics staff have used data up to the second quarter of 2016 to create Nationwide's Health of Housing Markets Report, which offers a regional look at each state's performance rankings.
For the third quarter of 2016, the report suggests a positive outlook over the next year due to strong demand drivers and supportive housing affordability. For the most part, the Leading Index of Healthy Housing Markets performance rankings in many metropolitan statistical areas remained positive.
This suggests that most local housing markets should see sustainable housing activity in the near term. Energy sector slowdowns continue to weigh on the housing outlook in a number of MSAs in energy-intensive areas, especially in North Dakota, Wyoming, Texas, and Louisiana. MSAs in these states comprise the entire bottom 10 LIHHM performance rankings. While more than half of MSAs are still below their pre-crash house price peak, about 150 areas have set all-time price peaks this year. This does not signal a price bubble, however, since incomes have climbed and housing market metrics remain healthy.