US Home Prices Rise at Highest Pace in Six Years!

According to last week’s S&P Case-Shiller 20-city home price index, US home prices jumped 7.9% in October, compared to twelve months ago.  This robust move marked the largest jump since June of 2014.  Analysts continue to point to strong demand for housing and limited inventory as the driving forces behind home prices soaring.  In addition, indicators also point to the impact that the Covid-19 pandemic has had on the housing market demand.  Millions of Americans are working from home and are looking for homes that have home offices, larger kitchens, or maybe even space for a home gym.  Other indicators show current homeowners looking to flee their urban apartments and move to the suburbs to find a new home. 

Overall, Interest rates are expected to remain at ultra-low levels.  Housing inventory is expected to remain tight, although new home construction is beginning to ramp up.  New homeowners are looking to enter the housing market.  All of these factors will continue to be the driving force for home prices continuing to rise in 2021.

Call your Advisors Mortgage Loan Officer today to discuss the current market in more detail and to learn what you qualify for.