Home Prices Jump 10%
The latest CoreLogic Home Price Insights report finds that homes are appreciating at the fastest pace in over 7 years (CoreLogic)
– Y-O-Y: Home prices nationwide increased 10% in January 2021 compared with January 2020
– M-O-M: Home prices increased 0.9% in January 2021 compared with December 2020
This was the first double-digit annual appreciation CoreLogic has recorded since November 2013
The low-rate environment had a big impact on prices. Frank Martell, President and CEO of CoreLogic, said in a statement, “Record-low mortgage rates were a significant driving force behind last year’s rebound in housing market activity. However, heavy competition for the few houses on the market drove home prices to historic highs, and mortgage rates are no longer enough to sway the affordability challenges for consumers.
So what does the future hold? A survey from CoreLogic found that nearly 76% of U.S. non-homeowners have no plans to purchase a home within the next six months. A plurality of respondent s(43%) said affordability constraints are the number one reason why they won’t be buying. This is why CoreLogic forecasts a slowdown for the year ahead
- The CoreLogic HPI Forecast predicts 3.3% growth from January 2021 to January 2022.