Real Estate Market Performance

Analysis of the overall health and outlook of the housing market

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5.6%

is the necessary mortgage rate to impact first-time home buyers.

Nearly

87%

of first-time home buyers are 26-35 years old.

Source: RESI Q2 2018.

Prices across all property types are expected to increase by

2.5%

over the next 12 months.

35.3%

of real estate professionals say limited supply is the primary obstacle to home buyers.

When considering the right time to buy or sell a home, an important factor in the decision should be the market's overall health, which is lagely a function of supply and demand. Knowing how close tha market is to a healthy level of activity can help buyers and sellers determine if it is a good time to buy or sell and what might happen to the market in the future.

"Understanding the factors driving the relationship between supply and demand and the outlook for the housing market is a critical part of the home buying and selling process, and buyers and sellers need a variety of sources to properly inform their housing decisions."

Mark Fleming
Chief Economist

"Overall, optimism among title agents and real estate professionals decreased this quarter, likely because they indicated refinance transaction volume is expected to fall in the coming year. However, while their outlook fell for purchase transaction volume growth from last quarter, it remains positive,"said Mark Fleming, chief economist at First American."Increasing mortgage rates clearly impacted optimism for the refinance market."

Real house prices changed
-37.9%
since the
pre-recession peak

It is difficult to assess if potential buyers and sellers are only looking at the number of homes sold at a single point in time. Historical context is critically important. That's why First American's proprietary Potential Home Sales Model measures what we believe a healthy market level of home sales should be based on the economic, demographic, and housing market environment.

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