Real estate data firm CoreLogic recently released their Home Price Index (HPI), which looks at home values and predicts their growth for the coming year. The most recent report, which forecasts September 2020 through September 2021, shows home prices nationally rose 6.7% year-over-year and are expected to climb a modest .2% between now and next September.
Idaho continues to buck national trends, once again landing in the top spot for the highest year-over-year appreciation at 11.8%. Here in the Treasure Valley, home prices were up 17% for September 2020 vs. September 2019. While the market is incredibly hot here in the valley, the entire state is experiencing massive demand as people are fleeing larger metropolitan areas for less dense locales.
Frank Martell, President and CEO of CoreLogic had this to say, “Housing continues to be a bright spot during an otherwise challenging economic time for many U.S. households. Those in sectors that weathered the transition to remote work successfully are now able to take advantage of low mortgage rates to purchase a home for the first time or to trade-up to a larger home.”
Houses for sale nationally dropped significantly in September, falling to the lowest level on record. Demand continues to be stable as record-low mortgage rates continue to motivate prospective buyers. COVID, however, continues to sideline many would-be sellers as concerns about where to move to linger. This is especially true locally as new construction can’t keep up with demand, and people aren’t listing their homes for a variety of COVID-related reasons.
“COVID has contributed to the acute shortage of inventory as the pace of new construction slowed, and older prospective sellers postponed listing their homes until after the pandemic. Once the pandemic passes or a vaccine is widely administered, we should see a noticeable pick-up in for-sale homes. And if the economy’s recovery is sluggish next year, distressed sales may also add to market inventory,” said Dr. Frank Nothaft, Chief Economist for CoreLogic.
While the CoreLogic HPI shows a national slowing of home value appreciation, here in Idaho, the expectation is that home values will continue their ascent. Even in the slower time of year for home sales, demand will continue to push costs higher, and records will continue to fall. This is excellent news for people looking to sell their home but will challenge those looking to buy.
Photo Credit: iStock.com/Dilok KlaisatapornI