Housing Market Potential Remained Flat in March – NMP Skip to main content

Housing Market Potential Remained Flat in March

Phil Hall
Apr 19, 2017
Potential existing-home sales in March decreased to a 5.5 million seasonally adjusted, annualized rate (SAAR), a 1.5 percent drop from February

Potential existing-home sales in March decreased to a 5.5 million seasonally adjusted, annualized rate (SAAR), a 1.5 percent drop from February, according to new data from First American Financial Corp. On a year-over-year basis, the market potential for existing-home sales grew by 0.6 percent compared with a year ago, an increase of 31,000 (SAAR) sales.
 
Last month’s data placed the potential existing-home sales is 853,000 (SAAR), or 15.5 percent below the pre-recession peak of market potential in July 2005. However, it is also an 83.3 percent increase from the market potential low point reached in December 2008.
 
Furthermore, First American determined that the market for existing-home sales is underperforming its potential by 2.3 percent, or an estimated 129,000 (SAAR) sales. But market underperformance improved 47 percent compared to March 2016, when the housing market for existing-home sales was underperforming its potential by 275,000 (SAAR) sales.
 
“Despite higher mortgage rates, the potential for home sales increased on an annual basis driven by steady income and job growth, along with a surge in building permits,” said Mark Fleming, chief economist at First American. “While it may be a little late for this spring, the increase in building permits is a welcome sign that some relief may be in sight for the inventory shortages that are holding back many markets from realizing their full potential this spring.”

 
Published
Apr 19, 2017
Blend Labs Has Cut 420 Jobs Since April

The 25% reduction of its workforce comes as it posts $478 million Q2 loss.

Industry News
Aug 17, 2022
UWM Now Offering Temporary Rate Buydowns

The temporary buydowns will lower borrowers’ interest rates by up to 2% for the first two years of a mortgage. 

Industry News
Aug 17, 2022
Rocket Mortgage Teams With Santander Bank

Rocket's mortgage services now available to Santander's U.S. banking clients

Industry News
Aug 16, 2022
Ameris Bank Commits $10M To Help 1st-Time Homebuyers

The Ameris Down Payment Grant Program will help eligible first-time buyers with down payments and closing costs.

Industry News
Aug 16, 2022
Competition Now Highest For Lowest-Priced Homes

In reverse of pandemic trend, competition for mid- and high-priced homes not as white hot among buyers.

Analysis and Data
Aug 16, 2022
Impac Mortgage Slashes Staffing Levels By 48%

From 330 in 4Q 2021, headcount now stands at 170 for California lender

Non-QM
Aug 15, 2022