The base period is a fixed point in time used as a benchmark to measure and compare statistical data, such as indices, over a subsequent span of time. This concept is often employed to assess changes in economic indicators like the Consumer Price Index (CPI).
The Consumer Price Index (CPI) measures the average change in prices over time that consumers pay for a basket of goods and services. It is a crucial indicator used to assess inflation and the cost of living.
Fundamental Demand Analysis is an element of Market Analysis where the demand for a property or property type is forecast based on expected changes in underlying demographic and economic factors for the market area.
Homeownership rate represents the percentage of owner-occupied dwellings compared to the total occupied dwellings in a specific area, providing insight into housing stability and economic activity.
The Housing Affordability Index is a statistical indicator that measures the ability of households in a specific area to purchase housing at prevailing prices using currently available financing. It typically compares the median household income to the required monthly payment for a median-priced home in the same area.
Housing starts refer to the number of new residential construction projects that have begun within a specific period, typically measured on a monthly basis. It is a leading economic indicator that provides insights into the real estate market and the economy at large.
Inflation in real estate refers to the rise in property prices due to the diminished purchasing power of money over time. This effect can make real estate a popular choice as a hedge against inflation.
A systematic analysis conducted to understand and evaluate the market conditions for a particular product, service, or strategic business decision, focusing primarily on supply and demand, competition, and economic indicators.
The Pending Home Sales Index (PHSI)® is a data series produced by the National Association of Realtors® (NAR) that indicates the trends in sales contracts for houses, condos, and cooperatives. It serves as a leading indicator of closed home sales.
A recession is characterized by a significant decline in economic activity across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
A yield curve is a graphical representation that shows the current interest rates of similar financial obligations, often government bonds, ordered by their maturity dates. The curve primarily informs about potential future interest rates and economic behavior.
