KEY MARKET INDICATORS as of Sep 13, 2017
Q2 State Economic and Housing Conditions
The job market in most states reported moderate year-over-year growth during Q2. Job growth remained the strongest on the West Coast, in the Southeast, and in Texas. While earnings growth has stuck at 2.5% nationally, we are seeing some interesting differences across states. States with faster job growth generally reported faster earnings growth during Q2, suggesting that tighter labor market conditions are generating wage pressure at the state level.
We continue to see only moderate growth in homebuilding activities both nationally and in most states, leading to a lack of supply and faster home price growth in many markets. The lack of supply remained the most acute in states such as Washington and Oregon where construction activities saw little growth, and demand was strong. A surprise this quarter was California, which reported one of the fastest growth rates in housing permits.
* FHFA Purchase-Only Home Price Index