7 Must Watch Economic Indicators for Real Estate Investors to Warn of a Housing Market Crash

US indicators can analyze current housing market trends when buying or selling a home, and these data sets can be valuable to homebuyers, sellers, and investors alike.

Rates Of Homeownership In The US Housing Market

As a U.S. housing market indicator, the national homeownership rate (which reflects every county’s average) is also useful. Listed here are the percentages of American households that own the space where they live and reside.

Mortgage Foreclosures and Delinquencies

On the other hand, as tracked by the delinquency index, mortgage delinquencies and foreclosures suggest that buyers are having difficulty making mortgage payments.

Housing Supply In The US Housing Market

Housing supply indices provide information on the number of vacant homes. In addition, the historical indexes can also indicate how many new and old properties are available simultaneously, as well as indicative of future price changes.

Current Rates Of Mortgage

The 30-year-fixed mortgage rate is another leading indicator of the U.S. housing market. A lower interest rate usually translates to less money that home buyers have to pay to finance their mortgage and buy a home 30-year-fixed mortgage rates tend to decrease when the economy is doing well and increase the demand for real estate.

Affordability

Rental affordability and home affordability are related to the percentage of residents who qualify for a mortgage or a rental in a specific neighborhood. Surveyors compile this data by comparing the average price of homes or rental units to the median household income in that area.

Home Sales

An index of home sales indicates how fast homes are being sold in certain areas. Using the previous annual period as a comparison, they are updated yearly.

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