In terms of monthly sales, this inventory would last 4.0 months, up 21 percent from the second quarter s 3.3 months. The composite Housing Market Index stood at 60 during the third and second quarters. However, the index is down 13 points from last year s third-quarter level of 73. The homeownership rate continues to increase, and a new record, 67.7 percent, was set in the third quarter. Multifamily housing market conditions are mixed.
Rental vacancies are up, but absorption of new rental units has improved.
This absorption rate is 3 percentage points higher than in the past quarter and 5 percentage points higher than in the same period in 1999. Rental vacancies during the third quarter were 8.2 percent of the available stock, up 0.2 percentage point from the second quarter but unchanged from the third quarter of last year. Regional Perspective HUD s field economists report that although home sales slowed during the first 9 months of 2000 compared with the same period last year, sales housing markets throughout the Nation remain very healthy. A robust economy has continued to boost demand in the Washington, D.C. metropolitan area, where existing home sales so far this year are up 10 percent. Homebuilding remains robust in the Midwest region, and 2000 will be another big year for home sales in the Chicago area.