Since bottoming in spring, the housing market has rebounded in such historic proportions that its impact is likely to continue through 2021, according to First American Financial Corporation’s recently released Potential Home Sales Model.
Existing-home sales bounced back in September, hitting a 14-year high after falling to a near-decade low in May. In October, the pattern continued, as the measure of market potential for existing-home sales increased 9% year over year to 5.98 million, nearly 21% higher than its low point in April of this year.
“This is an unprecedented swing in housing market potential in just a few short months,” said First American Chief Economist Mark Fleming in the report. “Analyzing the individual economic forces that have driven the recovery of market potential for existing home sales can provide insight into how the housing market may fare in 2021.”