In the latest CoreLogic Home Price Index (HPI) report and HPI Forecast, home prices jumped 5.5% year-over-year in July 2020, while also showing an increase of 1.2% in contrast to last month. According to the CoreLogic, this is the fastest acceleration of annual home price growth in nearly two years.
“Lower-priced homes are sought after and have had faster annual price growth than luxury homes. First-time buyers and investors are actively seeking lower-priced homes, and that segment of the housing market is in particularly short supply,” CoreLogic Chief Economist Frank Nothaft said.
“On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic. A long period of record-low mortgage rates has opened the flood gates for a refinancing boom that is likely to last for several years,” said CoreLogic CEO and President Frank Martell. “In addition, after a momentary COVID-19-induced blip, purchase demand has picked up, driven by low rates and enthusiastic millennial and investor buyers. Spurred on by strong demand and record-low mortgage rates, we expect to see more home building in 2021 and beyond, which should help support a healthy housing market for years to come.”
And similar to recent reports by many in the sector, CoreLogic says that homebuying activity is becoming more prominent in affordable suburban and rural areas. An example can be pointed to the Nassau and Suffolk counties in Long Island experiencing an annual increase of 4.3% in July, as the trend of hipsturbia and the pandemic both play a factor.