Real estate data tracking firm CoreLogic has released its July Home Price Insights report. And continuing a trend from the previous two months, Idaho is again leading the nation in year-over-year home price appreciation.
Nationally, home prices increased 5.5% in July 2020 when compared to July 2019 and increased month over month by 1.2% when compared to June 2020. The firm is still predicting a year-over-year increase of .6% from July 2020 to July 2021. They’re anticipating a scant .1% increase between July 2020 and August 2020.
According to the study, lower-priced homes are fueling the upward climb. Dr. Frank Nothaft, Chief Economist for CoreLogic, had this to say, “Lower-priced homes are sought after and have had faster annual price growth than luxury homes.” He continued, “First-time buyers and investors are actively seeking lower-priced homes, and that segment of the housing market is in particularly short supply.”
As discussed in the local Treasure Valley Market Updates, a tight supply with huge demand is propelling home prices here in the valley higher. The CoreLogic HPI says the state has seen a 9.8% year-over-year price increase since July 2019. As mentioned above, this is tops in the nation, besting Maine, which checked-in at a 9.1% increase, and Arizona, which saw a 9% increase.
Frank Martell, President, and CEO of CoreLogic, said, “the housing economy remains rock solid despite the shock and awe of the pandemic. A long period of record-low mortgage rates has opened the flood gates for a refinancing boom that is likely to last for several years.” He continued, “after a momentary COVID-19-induced blip, purchase demand has picked up, driven by low rates and enthusiastic millennial and investor buyers. Spurred on by strong demand and record-low mortgage rates, we expect to see more home building in 2021 and beyond, which should help support a healthy housing market for years to come.”
While the national numbers are good news showing the nation’s housing market slowed modestly due to the pandemic, the local real estate market is booming, especially for sellers.
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