First American’s proprietary Real House Price Index (RHPI) looks at March 2017 data and includes analysis from First American Chief Economist Mark Fleming on the continuing supply squeeze and its effect on real house prices.

“Homeowners may not be putting their homes on the market because they’re wary of the risk of selling when others don’t – the inability to find another home to purchase at the right price.”

“Real, purchasing-power adjusted house prices are rising even faster than unadjusted home prices alone, primarily due to declining consumer purchasing power. Strong Millennial demand, a limited supply of homes for sale, and higher mortgage rates have all combined to impact the affordability of homes compared to a year ago,” said Mark Fleming, chief economist at First American.

For Mark’s full analysis on affordability, the top five states and markets with the greatest and smallest increases in real house prices, and more, please visit the Real House Price Index.

The RHPI offers an alternative view of the change over time of house prices at the national, state and metropolitan area level. The traditional perspective on house prices is fixated on the actual prices and the changes in those prices, which overlooks what really matters to potential buyers - their purchasing power, or how much they can afford to buy. The RHPI adjusts prices for purchasing power by considering how income levels and interest rates influence the amount one can borrow.

The RHPI is updated monthly with new data. Look for the next edition of the RHPI the week of June 26, 2017.