Trulia Optimistic for 2014

Trulia, Inc. last week published its look back at the U.S. housing market’s uneven recovery in 2013. It finds a housing market moving back to its pre-bubble 'normal' level from the worst of the recession.

Throughout 2013, the housing recovery has progressed on most fronts but remains unbalanced, according to Trulia’s analysis. Of the five key indicators that Trulia now follows, three are on track towards a full recovery: Non-distressed home sales and prices are approaching normal levels and could reach them in 2014; and the delinquency plus foreclosure rate also improved significantly. But construction starts and young-adult employment remain closer to recession levels than to 'normal'.

Key housing market indicators

• Existing home sales, excluding distressed (NAR): The market was operating at 79% of 'normal' in 2013 compared to 51% at the end of 2012
• Home price level (Trulia): 71% of normal in 2013 compared to 16% at the end of 2012
• Delinquency plus foreclosure rate (LPS): 59% of normal in 2013 compared to 37% at the end of 2012
• New home starts (Census): 36% of normal in 2013 compared to 24% at the end of 2012 
• Employment rate, 25-34 year-olds (BLS): 23% of normal in 2013 compared to 28% at the end of 2012

Among the 100 largest U.S. metros, 10 housing markets are back to normal or nearly there, relative to local norms for both home prices and permits. However, most are in Texas and California – none are in Florida, which points towards room for further growth in the sunshine state.

Read Trulia's five housing predictions for 2014 at Florida Realtors®