Key Highlights
- Home prices hit an increase of +4% in December 2019
- Full year 2019 average home price appreciation hit +3.6%
- CoreLogic forecasts home prices to increase +5.2% from December 2019 – December 2020 and to average +4.6% for the full year of 2020
CoreLogic’s Home Price Index (HPI) report for December 2019 was just released. Here is a summary capsule of CoreLogic’s findings:
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- Home price gains in December 2019 were down from December 2018 gains of +4.4% to +4%.
- Home price gains in December 2019 of +4% were up from November 2019 home price gains of +3.5%.
- Home price gains averaged 3.6% for the full year of 2019…this was a BIG slowdown from 2018’s gains of +5.8%
- The full year average of home price gains for 2020 is forecast to be +4.6%.
The CoreLogic HPI has increased every month for more than seven years. Home price gains are now +63% higher than in April 2006 when home prices hit the bottom. Home price gains in December 2019 were +9.8% higher than the pre-crisis peak in April 2006.
CoreLogic tracks home price gains in four individual home price tiers. Each tier is calculated relative to median national home sale prices. Take a look at the home price gains at each price tier for December 2019:
- Lowest tier – +5.9% y/y
- Low-mid tier – +5.2% y/y
- Mid-moderate tier – +4.4% y/y
- Highest price tier – +3.7% y/y
Now take a look at comparative home price gains at each price tier since the price trough in 2011:
- Lowest tier – +97.5%
- Low-mid tier – +77.8%
- Mid-moderate price tier – +65.8%
- Highest price tier – 49.3%
States with the highest home price gains in December 2019 included Idaho (+9.9%), Maine, Wyoming, South Dakota and Missouri.
States with the lowest home price gains in December 2019 included New York State, North Dakota, Illinois, Mississippi and Connecticut with only +0.2% price gains. Connecticut remains the lowest in terms of home price gains at -17.2% below peak home price gains in July 2006.
Forty-one states, including Washington DC, have seen home prices rise above nominal pre-crisis prices.
Thirty-one states have seen home price gains slowing. Nevada’s home prices, +3.1% y/y, have cooled the most with a -7.4% slowdown from its +10.5% annual increase in December 2018.
Thanks to CoreLogic’s Molly Boesel for source data.
Also read: Home Prices Mostly Flat in October While Some States Saw Cool Down, Is NYC’s Lux Market Getting a Bump from Brexit?, Guarded Optimism as Global Lux Markets Enter 2020 – Part 2
