January 2021 CoreLogic Home Prices: Appreciation Reaches Double Digits This Month

CoreLogic's Home Price Index (HPI) home prices experiencing its first double-digit annual appreciation since November 2013.

.... 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 ....

Analyst Opinion of CoreLogic's HPI

Price growth exceeded my forecast for the year - home prices are continuing very strong.

According to CoreLogic:

.... revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

Also noted by Corelogic:

A survey from CoreLogic, conducted in February 2021, found that nearly 76% of U.S. non-homeowners, aged 18 or older, say that they have no plans to purchase a home within the next six months. When asked what was the biggest deterrent, 43% of respondents cited affordability constraints — specifically, not having enough money for a down payment or mortgage — which could be an additional factor keeping them from purchasing.

Dr. Frank Nothaft, chief economist at CoreLogic stated:

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. While new construction may help balance home prices towards the end of 2021, we may expect to see demand slow in the medium-term.

HPI Case-Shiller Trends - Year-over-Year Growth

Frank Martell, president, and CEO of CoreLogic stated:

At the start of the pandemic, many braced for a Great Recession-era collapse of the housing market. However, market conditions leading into the crisis — namely low home supply, desire for more space and millennial demand — amplified the rapid acceleration of home prices

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