Housing Market Dynamics Mirror the Early 1980s, According to First American Data & Analytics’ Potential Home Sales Model
The Potential Home Sales Model measures what the healthy market level of home sales should be based on economic, demographic and housing market fundamentals.
- The Potential Home Sales Model measures what the healthy market level of home sales should be based on economic, demographic and housing market fundamentals.
- The market potential for existing-home sales increased 0.3 percent compared with a year ago, a gain of 14,700 (SAAR) sales.
- Currently, potential existing-home sales is 1,424,000 (SAAR), or 21.0 percent, below the peak of market potential, which occurred in April 2006.
- “But the housing market today is very different from the housing market during the aftermath of the previous housing boom.