Attached housing refers to dwelling units that are connected to each other on at least one side, often separated by firewalls or other physical partitions. This stands in contrast to detached housing, where structures are standalone.
The Case-Shiller/S&P Home Price Index is a measure developed by economists Carl Case and Robert Shiller for Standard & Poor's Corporation. It tracks the price changes of single-family homes in the U.S. by analyzing repeat sales of properties across various metropolitan areas.
The process of converting rental apartments or other types of multi-unit buildings into individually owned units usually under a condominium structure.
Demand refers to the quantity of goods or services that consumers are willing and able to purchase at a given price. It plays a crucial role in the real estate market as it influences prices and availability.
In real estate, a depression signifies a severe decline in business activity characterized by high unemployment, excess supply, and public fear, which typically results in reduced real estate construction and high vacancy rates.
Empty nesters are a significant segment of the housing market, typically comprising couples whose children have moved out to establish their own households. This often leads to a demand for smaller and more manageable housing units.
The Existing Home Sales (NAR) dataset is a comprehensive measure of the number of completed transactions involving single-family homes, condos, and co-ops. Reported by the National Association of Realtors® (NAR), the data is derived from more than 1,200 local Multiple Listing Services (MLS) and is crucial for gauging the health of the U.S. residential real estate market.
Fair Market Rent (FMR) is the amount a property would command if it were available for lease on the open market, reflecting current rental market conditions. FMR is often used in determining rent subsidies under government programs and provides a benchmark for rental prices in a given area.
The FHFA House Price Index (HPI) is a home price index compiled by the Federal Housing Finance Agency, based on data from loans held by home mortgage GSEs. It provides values for each state and metropolitan area in the United States.
Freddie Mac (Federal Home Loan Mortgage Corporation) is a government-sponsored enterprise (GSE) that buys and securitizes mortgages to ensure a reliable and affordable supply of mortgage funds across the country.
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.
Generation X refers to the population cohort born between the early 1960s and early 1980s. This group followed the Baby Boomers generation and has distinct demographic and socio-economic characteristics.
Generation Y, or Millennials, refer to the cohort of individuals born from the early 1980s to the early 2000s. This group is known for its technological savviness, entrepreneurial spirit, and a distinct set of values from previous generations.
Ginnie Mae, or the Government National Mortgage Association, provides guarantees for mortgage-backed securities, ensuring a steady flow of capital into the housing market.
The Home Price Index (HPI) is a measure of the relative level of prices in a specific housing market at a specific time. The index values indicate change over time rather than an average or median price in dollars. They are typically pegged to a starting value and show the appreciation or depreciation in housing prices.
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.
Housing completions refer to the number of new housing units that are completed and ready for occupancy. This metric is reported by the U.S. Census Bureau and reflects construction progress in the real estate market.
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.
Housing stock refers to the total number of dwelling units available in a specific area, including both occupied and vacant units, but excluding specific types such as group quarters and congregate housing.
The phrase 'Location, Location, Location' emphasizes that the location of a property is one of the primary factors influencing its value. The statement underscores that the geographical location outweighs almost all other variables in determining real estate prices.
Manufactured housing refers to homes that are built in factories and then transported to a specific site for use. These homes must pass federal inspections in contrast to mobile homes, which often have fewer regulatory requirements. Manufactured homes often include modular housing options.
A move-up home refers to a property that is larger, more expensive, or better equipped than a starter home, often acquired by individuals or families who have increasing financial stability and changing needs.
The NAHB is a trade association that represents the interests and concerns of home builders, developers, contractors, and related professionals within the residential construction industry in the United States.
The National Association of Real Estate Editors (NAREE) is a prestigious organization that brings together journalists, editors, and communicators covering various aspects of the real estate industry including residential, commercial, and green building sectors.
A data series produced by the Bureau of Labor Statistics, Owners' Equivalent Rent (of Primary Residence) is used in compiling the Consumer Price Index (CPI) to track the rental value that the average owner-occupied home would command in the market.
In the realm of real estate, a production builder constructs homes based on pre-designed plans and specifications, often creating multiple houses using an assembly-line process. This method contrasts with custom builders, who craft unique homes tailored to individual needs.
The real estate market consists of potential buyers and sellers of real property at any given moment, as well as the current transaction activity surrounding such properties. It encompasses various segments including housing, office spaces, condominiums, and land.
Rehab, short for rehabilitation, refers to the process of restoring or improving a property to a better condition, often for resale or rental purposes. It typically involves fixing structural issues, upgrading systems, and enhancing aesthetics.
A rent spike refers to a sudden and temporary rise in market rents that significantly outpaces the general inflation rate, often driven by changes in demand or external factors impacting the housing market.
The Repeat Sales Price Index (Home Price Index) is constructed using sales data for homes that have sold more than once over the time period covered by the database. It aims to provide an accurate measurement of home price appreciation by analyzing price changes for the same properties over time.
A Residential Accredited Appraiser (RAA) is a professional designation that signifies an appraiser's commitment to advanced residential valuation education, proficiency, and industry best practices.
A starter home is typically a modest-sized house designed for first-time homebuyers. These homes serve as entry points into the housing market, often featuring less than 1,500 square feet and existing within an affordable price range.
The fundamental economic concept of Supply and Demand dictates that market prices are determined at an equilibrium point where the quantity supplied matches the quantity demanded. In real estate, this principle is complicated by the slow adjustment of supply due to lengthy planning and development periods.
Trading Up refers to the process of buying a larger or more expensive property, often done to accommodate growing families, enhance lifestyle, or secure better investment opportunities.
Wrongful foreclosure occurs when a lender improperly or illegally forecloses on a borrower’s property. This type of foreclosure typically arises due to failure to follow correct legal procedures or agreements made between the lender and the borrower.
