Affordability in the U.S. fell in 2021 on a year-over-year basis, as house-buying power was unable to keep up with red-hot nominal house price growth. The decline in affordability was broad based as affordability fell in most major markets across the U.S., yet some markets remain more affordable than others for potential first-time home buyers. ... Read More ›

In December 2021, the Real House Price Index (RHPI) increased 21.7 percent compared with December 2020, the highest annual growth rate since 2014. The record increase was driven by rising mortgage rates and rapid nominal house price appreciation, which make up two of the three drivers of the RHPI. The 30-year, fixed-rate mortgage and the ... Read More ›

While still 4 percent higher than one year ago, the market potential for existing-home sales declined to its lowest level since June 2021, according to the first Potential Home Sales Model report of 2022. Demand for homes will remain strong in 2022, but declining affordability and lack of supply may limit market potential. Potential home buyers ... Read More ›

In November, year-over-year nominal house price appreciation reached 21.5 percent, the sixth consecutive month it has set a new record. According to our Real House Price Index (RHPI) - which measures housing affordability based on changes in income, interest rates and nominal house prices - affordability declined 21.0 percent compared with a year ... Read More ›

The final Potential Home Sales Model report of 2021 revealed that market potential ended the year on a strong note. While the winter months are traditionally real estate’s slow season, our measure of the market potential for existing-home sales showed the housing market again broke with traditional seasonal patterns by ending the year strong. In ... Read More ›

Unlike the two-thirds of Americans who already own a home, potential first-time home buyers did not benefit from the surging levels of home equity driven by rapid house price appreciation. Just as in 2020, low mortgage rates increased house-buying power and simultaneously boosted demand amid record low levels of homes for sale, further ... Read More ›