Home prices across the U.S. increased by 4.9 percent in June YoY, according to the latest CoreLogic Home Price Index (HPI™) and HPI Forecast™. From the previous month, home prices increased by 1 percent, compared with May of this year—the fastest monthly gain for the month of June since 2013.
At the local level, home price activity varies drastically. In Philadelphia, for example, home prices grew 8.4 percent in June on an annual level. Meanwhile, in San Francisco, home prices declined 0.2 percent YoY.
“Mortgage rates hit record lows this spring, which created affordability for homebuyers,” said Dr. Frank Nothaft, chief economist at CoreLogic. “First-time buyers, and millennials in particular, have jumped at the opportunity to achieve homeownership.”
“Home price appreciation continues at a torrid pace reflecting fundamental strength in demand drivers and affordability,” said Frank Martell, president and CEO of CoreLogic. “As we move forward, we expect these price increases to moderate over the next twelve months. Given the economic outlook, housing remains a bright spot for the foreseeable future.”
Next year could see some modest price declines, according to CoreLogic. And it will largely depend on each market’s environment and external factors such as tourism. In areas like Prescott and Lake Havasu, Ariz., for example, Core Logic expects a decline in home prices over the next 12 months due to an elevate resurgence of COVID-19 cases. Other areas at risk of price declines include Las Vegas, Nev.; Peoria, Ill.; and Worchester, Mass.
For more information, please visit www.corelogic.com.