First American has released the newest edition of its Real House Price Index, which reflects inflation factors such as shifts in income and mortgage rates. According to the report, the influence of better wages and declining interest rates shows that even though prices are close to peak in many major metros, consumers are gaining buying power.

  • First American has released its Real House Price Index, which adjusts home prices based on wages and mortgage rates.
  • First American found real house prices in the U.S. are 38.5 percent below their peak seen in 2006 and 17.3 percent lower than 2000.
  • In Miami, the real price index is 83, down 0.2 percent monthly and 1 percent quarterly.

First American has released the newest edition of its Real House Price Index, which reflects inflation factors such as shifts in income and mortgage rates.

According to the report, the influence of better wages and declining interest rates shows that even though prices are close to peak in many major metros, consumers are gaining buying power.

Despite reports of affordability waning in major metros across the nation, First American found real house prices are 38.5 percent below their peak seen in 2006 and 17.3 percent lower than 2000.

Without factoring income and interest rate changes, First American reports home prices are just 2.6 percent away from the 2007 housing peak.

First American says foreign financials are helping affordability in the U.S. as more investors are turning toward U.S. Treasury Bonds. As a side effect, treasury yields are keeping mortgage rates low for prospective homebuyers.

Screen Shot 2016-08-30 at 11.56.58 AM

Miami shows improved affordability

The Miami Real House Price Index is now 83, down 0.2 percent monthly and 1 percent quarterly. It’s also down 0.1 percent from last year, which means affordability is improving, if only slightly.

The RHPI is set equal to 100 based on January 2000 real home prices.

Jacksonville showed a 10.3 percent annual increase in RHPI, ranking it no. 1 in the nation for year-over-year increase. Tampa and Orlando also made the top five for year-over-year RHPI jumps at 6.5 and 3.3 percent, respectively.

Email Jennifer Riner

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription