The buyer purchasing power index (BPI) decreased slightly to 7.7 in December 2012. This represents a 7.7% increase in mortgage funds available to today’s buyers over one year earlier. December’s BPI was down from 8.66 in December 2011. All figures remain positive for short-term upward price movement.
first tuesday forecasts the BPI will drop to zero by mid-2013 and remain there throughout 2014. The BPI will go negative in 2015 when long-term rates rise due to an improving economy. Sellers will then experience downward pressure on prices as buyers are able to borrow less with the same income.
More information at source: http://firsttuesdayjournal.com/press-release-buyer-purchasing-power-index-remains-high/