Housing Market Trends

From the First American Economic Center

The First American Economic Center has you covered with in-depth analysis and expert insights on the latest data and trends in the industry.

Why the Big Short in Housing Supply Will Remain in 2021

By Mark Fleming on December 3, 2020
As the housing market has recovered from the initial impacts of the pandemic, nominal house price appreciation has soared, but affordability actually improved until recently due to the house-buying power benefit from historically low mortgage rates. However, for the second month in a row, the Real House Price Index (RHPI) increased, indicating ... Read More

Interest Rates Real House Price Index Affordability Housing supply

The Five Cities Where Affordability Declined the Most

By Mark Fleming on November 23, 2020
Affordability declined month over month in September for the second month in a row, even as two of the three key drivers of the Real House Price Index (RHPI), household income and mortgage rates, swung in favor of increased affordability. The 30-year, fixed-rate mortgage fell by 0.05 percentage points and household income increased 0.2 percent ... Read More

Interest Rates Real House Price Index Affordability

Why the Student Loan Debt Burden is Overstated

By Odeta Kushi on November 19, 2020
Student loans are often cited as an insurmountable barrier to homeownership for young home buyers. It is true that student loan debt levels are higher today than a generation ago, but is it preventing potential home buyers from saving for a down payment? The recently released 2019 Survey of Consumer Finances data highlights some important trends ... Read More

Millennials Education Homeownership

What Does the Housing Market’s Historic Pandemic Rebound Mean for 2021?

By Mark Fleming on November 18, 2020
The housing market’s historic rebound since bottoming in the spring has been nothing short of amazing. After falling to a near-decade low in May, existing-home sales hit a 14-year high in September. In October, our measure of market potential for existing-home sales increased 9.0 percent compared with one year ago to a 5.98 million seasonally ... Read More

Interest Rates Potential Home Sales Tenure

What a Pandemic-Driven Shift in the Labor Market Could Mean for Housing

By Mark Fleming on November 12, 2020
The October jobs report exceeded consensus expectations for job growth, yet the labor market’s rebound continues to slow. Higher frequency data from weekly jobless claims confirm the slowdown, as the level of new jobless filings is not falling as quickly in recent months. COVID-19 cases are on the rise and there is increasing likelihood of a ... Read More

Housing Homeownership

Interview with Yahoo! Finance: Explaining the Housing Market’s Resilience in the COVID-19 Era

By FirstAm Editor on November 9, 2020
First American Deputy Chief Economist Odeta Kushi was interviewed on Yahoo! Finance earlier this month, discussing why the housing market is better positioned in this recession than it was heading into the Great Recession, and how low rates and millennials are driving demand. Read More

Housing In The News Interest Rates Affordability