Housing Demand Continues to Drive Pricing

CoreLogic released their Home Price Index last week, and it showed that home prices across the nation increased in price by 1.1% in the month of November.  Over the last twelve months, their report showed that homes increased in price by 8.2%. Looking into the future, they are forecasting homes to appreciate by about 2.5% over the next twelve months, where other analysts are seeing the rate of appreciation closer to five or six percent.  Either way, homes are still selling very rapidly and at a premium due to the high levels of demand.   

Frank Martell, who is the President and CEO of CoreLogic said, “The housing market performed remarkably well in 2020 despite the volatile economic state. While we can expect to see lingering effects of COVID-19 resurgences and subsequent shutdowns in the early months of 2021, vaccine distributions and stimulus actions should revitalize economic activity and keep home purchase demand and home price growth strong.”

Speaking of demand of homes, the National Association of Realtors or NAR, showed that pending home sales, or sales of existing homes with signed contracts increased by 16.4% over the last year.  This a very large increase of pending sales, especially with a 22% lower housing inventory level.

With low, aggressive interest rates and very strong levels of demand, the housing market is poised for another very strong year and proves it is still a great time to purchase a home.