Potential Existing-Home Sales Take a Tumble – NMP Skip to main content

Potential Existing-Home Sales Take a Tumble

Jan 23, 2017

Potential existing-home sales decreased to a 5.8 million seasonally adjusted, annualized rate (SAAR) last month, according to data from First American Financial Corporation, while the market potential for existing-home sales grew by 2.9 percent compared with a year ago, an increase of 164,000 (SAAR) sales. Last month’s figures represented a 92.5 percent increase from the market potential low point reached in December 2008.

First American reported that the potential existing-home sales is 432,000 (SAAR) or 7.5 percent below the pre-recession peak of market potential, which occurred in July 2005. Mark Fleming, chief economist at First American, warned that the market is not without lingering problems.

“The market potential for existing-home sales fell 3.1 percent between November and December due to the post-election rate increase, offsetting increased demand caused by the strength of the broader economy, particularly wage growth and improving access to credit,” Fleming said. “However, the market continues to underperform its potential due to the highly limited inventory. While low inventories are still responsible for higher prices, I expect the impact of the increasing mortgage rates will cause a modest cooling in house price growth in 2017.”

About the author
Published
Jan 23, 2017
July CPI Eases Mortgage-Rate Risk, But Doesn’t Promise Relief

Consumer inflation rose just 0.1% in July, reducing pressure for a September Fed rate hike as mortgage rates remain near their highest levels of the year

Aug 13, 2026
The Fed Held. The Mortgage Market Got A Warning.

Three policymakers favored an immediate hike, while Warsh welcomed higher bond yields and offered no clear path toward mortgage-rate relief

Jul 30, 2026
New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Jul 15, 2026
First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Jul 10, 2026
Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Jul 09, 2026
June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Jul 02, 2026