Is it a Good Time to Buy a Home?
By
Mark Fleming on June 28, 2021
In today’s housing market, the power is very clearly in the hands of the seller. In April, First American Data & Analytics’ nominal house price index increased 16.2 percent year over year, the fastest pace since 2005. Rapid appreciation is driving declines in affordability, despite rising incomes and lower mortgage rates. Nationally, according ...
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Why Homebodies Versus Pandemic-Fueled Demand Will Determine the Outlook for Housing Market Potential
By
Mark Fleming on June 22, 2021
Housing market potential strengthened again last month, according to our Potential Home Sales Model, despite significant supply headwinds. In May, housing market potential increased 0.8 percent compared with April, and is now nearly 23 percent higher than the pandemic-driven decline last May. Relative to two years ago, housing market potential is ...
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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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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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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 and ...
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Will Rising Equity Levels Mean More Homeowners Will List Their Homes for Sale?
By
Mark Fleming on April 27, 2021
The three components of the Real House Price Index (RHPI) are household income, mortgage rates and a nominal house price index. The RHPI adjusts nominal house prices according to changes in income and interest rates, which together make up consumer house-buying power. When incomes rise, house-buying power rises as well. However, when mortgage ...
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