CoreLogic’s latest Home Price Index (HPI) forecasts that home prices will increase +5.3% by November 2020.
Frank Nothaft, CoreLogic’s chief economist, said the HPI indicates that the slowdown in home price appreciation experienced during early 2019 ended in the late summer. “Growth in the US HPI quickened in November 2019 and posted the largest 12-month gain since February 2019. The decline in mortgage rates, down more that one full percentage point for fixed-rate loans in November 2018, had supported a rise in sales activity and home prices.”
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On top of Corelogic’s HPI projections, Zillow just reported in its December 2019 report that there are now 218 cities in the US that have typical home values of at least $1M. There is little surprise which areas around the country had the most cities with $1M+ price tags:
- San Francisco Bay Area – 46 cities
- New York area – 43 cities
- Los Angeles area – 30 cities
- Boston area – 10 cities
- San Jose area – 10 cities
- Miami area – 7 cities
Cities new to this $1M+ club now include…
- Santa Ynez CA
- Telluride CO
- Forest Hills TN
- Sierra Madre CA
- McLean VA
- Moose WY
- Redondo Beach CA
Cities formerly in this $1M+ club that fell off the list include…
- San Jose CA
- San Quentin CA
- Lexington Hills CA
- Lanai HI
In the meantime, CoreLogic in its same HPI reporting found that older Millennials (ages 30-38) and younger Millennials (ages 21-29) differ in their confidence levels towards homeownership. Older Millennials were more optimistic about their ability to afford homeownership than younger Millennials. Older Millennials, 64%, are strongly considering purchasing their own homes within the next twelve months. Younger Millennials are not confident at all about their ability to afford a home in 2020 but are instead planning on renting their next home.
Frank Martell, CoreLogic’s CEO and president, said, “With home prices expected to rise just over +5% over the next twelve months, affordability remains a concern for most prospective buyers”
Thanks to HousingWire’s Alcynna Lloyd and Julie Falcon for source material and data and CoreLogic and the Zillow Group for source data.