The Case for Optimism for Housing Market Potential in 2023, According to First American Potential Home Sales Model

Source: Yahoo! — 

SANTA ANA, Calif., December 20, 2022–(BUSINESS WIRE)–First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today released First American’s proprietary Potential Home Sales Model for the month of November 2022. The Potential Home Sales Model measures what the healthy market level of home sales should be based on economic, demographic, and housing market fundamentals.

November 2022 Potential Home Sales

• Potential existing-home sales increased to a 5.24 million seasonally adjusted annualized rate (SAAR), a 2.5 percent month-over-month increase.

• This represents a 50.4 percent increase from the market potential low point reached in February 1993.

• The market potential for existing-home sales decreased 18.2 percent compared with a year ago, a loss of 1,164,600 (SAAR) sales.