Economic Center Blog
Welcome to the First American Economic Center Blog, a top source for the latest housing market research and analysis driven by Chief Economist Mark Fleming.

Reconomy Podcast: What Does The Rush To Suburbia Mean For Real Estate?

By FirstAm Editor on June 10, 2021

In this episode of the REconomy podcast from First American, Chief Economist Mark Fleming and Deputy Chief Economist Odeta Kushi explain the dynamics influencing the second coming of suburbia and the implications for the broader real estate economy.

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Topics: Interest Rates Affordability REconomy

Housing Inflation Is Not What You Think It Is

By Mark Fleming on June 9, 2021

One of the most closely watched indicators of inflation, the Consumer Price Index (CPI), jumped 4.2 percent year over year this April. This is a faster pace than most economists anticipated, and was a result of base effects, combined with the numerous supply chain bottlenecks driving up prices as the economy reopens. One of the most important...

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Topics: Housing Interest Rates Real House Price Index

Reconomy Podcast: Deflation In The Housing Market? Let Us Explain.

By FirstAm Editor on May 27, 2021

In this episode of the REconomy podcast from First American, Chief Economist Mark Fleming and Deputy Chief Economist Odeta Kushi discuss how inflation in owner-occupied housing is measured and why an argument can be made that the long-run trend in housing cost has been deflation, not inflation.

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Topics: Interest Rates Affordability REconomy

Why Housing Affordability Sank For The First Time In Over Two Years

By Mark Fleming on May 24, 2021

Housing affordability on a year-over-year basis declined in March for the first time since January 2019, ending a more than two-year streak of rising affordability. The long run of increasing affordability snapped, even as two of the three key drivers of the Real House Price Index (RHPI), household income and mortgage rates, swung in favor of...

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Topics: Interest Rates Real House Price Index Affordability

Why Housing Market Potential Strengthened In April

By Mark Fleming on May 20, 2021

Housing market potential regained strength in the month of April, according to our Potential Home Sales Model. In April, housing market potential increased 1.3 percent compared with March, and is now nearly 30 percent higher than the pandemic-driven collapse last April. Relative to two years ago, housing market potential is 16.7 percent higher...

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Topics: Interest Rates Homeownership Potential Home Sales

Has The Great Housing Supply Crash Bottomed Out?

By Mark Fleming on May 19, 2021

More than a year into the pandemic, the housing market continues to run hot. The supply and demand imbalance brewing before the pandemic boiled over in the past year, resulting in record low levels of housing inventory and, consequently, the fastest pace of annual house price appreciation since 2005. With the arrival of the spring home-buying...

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Topics: Housing Housing supply