What HMI Tells Us About The Real Estate Market
Q: What’s a good way to keep track of what’s going on in the real estate market? Lex, West New York, NJ
A: The Housing Market Index (HMI) is one way to track the health of residential real estate. The HMI is a monthly-released weighted average of three separate components: 1) Current Single-Family Home Sales, 2) Single-Family Home Sales Projection for the Next Six Months, and 3) Traffic of Prospective Home Buyers that is released monthly. The HMI is a number between 0 and 100. The HMI has gone down every month since June 2022 and is 31 as of December 2022 down from 84 in December of 2021. The closer the HMI is to 100 the healthier the real estate market is so 31 is on the lower end of the scale. Thanks for your question, Lex.
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