Home price growth rate hits 42-year high



At the beginning of summer housing market cooling forecasts did not become reality.

House prices rose 17.2% in June – the highest rate since 1979 – up from 15.2% in May and 4.5% a year earlier, according to CoreLogic. This marks the fifth straight month that the house price index rose in double digits year on year, significantly exceeding forecasts made in the midst of 2020 uncertainty.

Continued lack of inventory and continued high demand due to low mortgage rates keep the cost of housing at a high level. CoreLogic predicts prices will rise another 0.7% in July and 3.2% by June 2022.

“With a lot cash on the sidelinesalong with very low mortgage rates, prices are rising and availability will become more acute question for the foreseeable future, ”says Frank Martell, President and CEO of CoreLogic, in the report.

As of Idaho continued to rule the nation with an increase of 34.2% year on year in June. Arizona, Montana and Utah were down 26.1%, 24.3% and 23.4%, respectively. In contrast, New York has the lowest rate at 6%, followed by 6.3% in North Dakota, 7.7% in Mississippi and 8.6% in Alaska.

Phoenix at the top 10 largest metros with 26.9% growth annually. Next are 22.4% of San Diego, 18.4% of Denver and 18.3% of Las Vegas.

Some markets may see a decline in the cost of housing next year. In Springfield, Massachusetts, house prices are between 25% and 50% likely to fall by June 2022, while Worcester, Massachusetts, Chico and Oxnard, California, and Norwich, Connecticut all have up to 25%. the likelihood of seeing a decline. …

“Pandemic caused an increase in the desire of buyers for areas with lower density and more living space – both inside and outside their home, ”said Frank Notaft, chief economist at CoreLogic. “Communities with detached houses fill this need. Private houses had the highest annual growth in June since the creation of the CoreLogic Home Price Index in 1976. “


Source link