Housing Market Potential Increases, But Remains Restricted by Existing Home Supply

By Mark Fleming on June 21, 2023
Our Potential Home Sales Model, which measures what a healthy market for home sales should be based on the economic, demographic and housing market environments, increased modestly in May, but is still down 5.7 percent from a year ago. The primary factor limiting housing market potential is existing homeowners staying put. Read More

Interest Rates Potential Home Sales tenure

Two Dynamics Locking Existing Homeowners into their Homes

By Mark Fleming on May 17, 2023
The housing market remains sluggish heading into the spring home-buying season. While mortgage rates have retreated from recent peaks, they remain elevated compared with one year ago. Higher mortgage rates have a dual impact on sales – pricing out buyers who lose purchasing power and keeping some potential sellers rate-locked in. There are plenty ... Read More

Interest Rates Potential Home Sales tenure

Will there be a Residential Real Estate Credit Crunch?

By Mark Fleming on April 18, 2023
The housing market has faced its fair share of headwinds leading up to this year’s spring home-buying season. While mortgage rates have retreated from recent highs, they remain elevated compared with one year ago, and house prices, while down from the peak, also remain elevated. All while housing supply remains historically and unseasonably low. ... Read More

Interest Rates Potential Home Sales tenure

Why Home Buyers May Find More Opportunities with New Homes this Spring

By Mark Fleming on March 21, 2023
The spring season is typically the busiest time of the year for the housing market. According to data from First America Data & Analytics, historically approximately 36 percent of existing-home sales for the year occur from March through June. The housing market’s seasonal pattern is driven by factors such as weather, holidays and the ... Read More

Interest Rates Potential Home Sales tenure

How Will Recent Uptick in Mortgage Rates Impact Spring Home-Buying?

By Mark Fleming on February 22, 2023
There’s no question that the housing market fell into a deep freeze in the second half of 2022. Excluding the early months of the pandemic, the pace of existing-home sales fell below 5 million seasonally adjusted sales for the first time since 2014. Yet, signs have emerged that sales activity may pick up in the months ahead. Purchase mortgage ... Read More

Interest Rates Potential Home Sales tenure

Why Housing Market Potential Increased for the Second Straight Month

By Mark Fleming on January 20, 2023
Housing market potential closed 2022 on a two-month upswing, increasing by 3.0 percent relative to November. Despite the second consecutive month-over-month uptick, housing market potential remained down 17 percent compared with December of last year, a decline of 1,065,000 potential existing-home sales. The steep annual decline in market ... Read More

Interest Rates Potential Home Sales tenure