Economic Center Blog
Welcome to the First American Economic Center Blog, a top source for the latest housing market research and analysis driven by Chief Economist Mark Fleming.

Why Housing Market Potential Increased for the First Time in Nearly a Year

By Mark Fleming on September 21, 2022
August marked the first time in nearly a year that housing market potential increased on a monthly basis, increasing 2.1 percent compared with July to an estimated pace of 5.61 million at a seasonally adjusted annualized rate (SAAR). The month-over-month increase was also the largest monthly increase in housing market potential since December ... Read More›

Interest Rates Potential Home Sales tenure

Is this the Great Normalization of the Housing Market?

By Mark Fleming on August 17, 2022
According to our Potential Home Sales Model, the market potential for existing-home sales in July was estimated to be 5.45 million at a seasonally adjusted annualized rate (SAAR), down 0.2 percent compared with last month, and 14.4 percent lower than one year ago. Read More›

Interest Rates Potential Home Sales tenure

How the Fundamentals Influencing Housing Market Potential Have Changed

By Mark Fleming on July 20, 2022
The market potential for existing-home sales in June was estimated to be 5.47 million at a seasonally adjusted annualized rate (SAAR), down 2.5 percent compared to last month, and 13.1 percent lower than one year ago, which is near the same level as in early 2019. Read More›

Interest Rates Potential Home Sales tenure

Two Trends Slowing Housing Market Normalization

By Mark Fleming on June 20, 2022
The market potential for existing-home sales in May fell 2 percent to 5.62 million at a seasonally adjusted annualized rate (SAAR), compared with last month, and is 10.5 percent lower than one year ago. Yet, the market potential for home sales remains 2.5 percent higher than May 2019, before the pandemic hit.   Read More›

Interest Rates Potential Home Sales tenure

Will Higher Mortgage Rates Bring Normalcy to the Housing Market?

By Mark Fleming on May 18, 2022
The market potential for existing-home sales in April declined 3 percent compared with last month, falling to 5.74 million at a seasonally adjusted annualized rate (SAAR). Housing market potential is down 8.1 percent, compared with the roaring housing market in April 2021, but today’s housing market is still very 2019, which was the housing ... Read More›

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Why the 2022 Housing Market is Very 2019

By Mark Fleming on April 19, 2022
Since the start of the global pandemic in March 2020, we have weathered unprecedented pandemic-induced changes and the housing market has been no exception. The typically hot spring home-buying season in 2020 was initially frozen by the pandemic’s impacts and shelter-in-place orders. As potential home buyers emerged from the stay-at-home orders, ... Read More›

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What is Driving Housing Market Potential as the Spring Home-Buying Season Begins?

By Mark Fleming on March 18, 2022
Following nearly two years of a soaring housing market, the 2022 spring home-buying season will be watched closely for signs that more balance may be returning to the housing market. Our Potential Home Sales Model estimates the expected level of existing-home sales based on market fundamentals, providing a helpful tool to assess the state of the ... Read More›

Interest Rates Potential Home Sales tenure

Opposing Supply-Demand Forces Hold Key to Housing Market Potential

By Mark Fleming on February 22, 2022
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›

Interest Rates Potential Home Sales tenure