Key Highlights
- According to CoreLogic, forecasts for home prices point to +5.2% y/y through 2020
- Homes sold below local median prices in 2019 saw price gains of +5.9%
- Homes sold above local median prices in 2019 gained +3.7%
CoreLogic recently released its Home Price Index (HPI) findings for 2019. This HPI is designed to provide early indications of home price trends and indications are for home prices to increase +5.2% y/y through 2020 according to CoreLogic’s chief economist Frank Nothart.
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Nothart backs up the HPI forecast by pointing to the Millennial trend of nearly doubling their household creation rates once hitting their 30’s. Such trends are substantiated by 79% of current renters indicating their desire to purchase a home “in the future.”
CoreLogic’s president and CEO, Frank Martell said, “Nationally, home prices are on the upswing and likely to accelerate in 2020. Millennial demand continues to increase but 74% admit they have to make significant sacrifices to afford a home. This would become an even bigger factor as home prices reach new heights during 2020.”
The CoreLogic HPI indicates that states with the highest price increases in 2019 included:
- Idaho – +9.9%
- Maine – +7.9%
- Wyoming – +7.7%
- South Dakota – +7.4%
- Missouri – +6.5%
- Arizona – +6.4%
- New Mexico -+6.4%
- West Virginia – +6.3%
- Utah – +6.1%
- Indiana – +6/0%
Cities with the larges price increases included Washington DC (+4.5%), Houston (+3.5%) and San Diego (+3.0%).
Undervalued markets (26% of CoreLogic’s tracked metros) were located mostly in the Midwest and East.
Overvalued markets, 40%, included:
- New York – Jersey City – White Plains
- Houston – The Woodlands – Sugar Land
- Washington DC – Arlington – Alexandria
- Dallas – Plano – Irving
Normal value markets, 40%, included:
- Chicago – Naperville – Arlington Heights
- Los Angeles – Long Beach – Glendale
- Atlanta – Sandy Springs
- Riverside – San Bernardino – Roswell
- Minneapolis – Bloomington
CoreLogic’s HPI indicated the following state markets as being the most risky:
- Nevada
- Alabama
- North Carolina
- Florida
- Texas
- Arizona
Thanks to CoreLogic’s staff writers for source data.
Also read: Podcast: What To Expect In 2020? 10 Key Points!, Big Takeaways from ATTOM’s Year-End Sales Report, Podcast: Top 10 Reasons You Didn’t Get the Listing (+Secrets for Getting it Signed!) Part 3
