Skip to main content

Annual U.S. Home Price Appreciation Reached 6-Year High In September 2020

Navi Persaud
Nov 03, 2020
Aerial photo of homes in a suburban neighborhood.

CoreLogic's Home Price Index and HPI Forecast reported a 6.7% increase in home prices nationally, in September 2020 compared to September 2019. This makes the fastest annual acceleration since May 2014, according to the reports. Home prices are increased by 1.1% from August 2020.

Home-purchase demand paired with record-low mortgage rates and dwindling inventory contributed to the increase in home prices. CoreLogic cited the National Association of Realtors and U.S. Census Bureau, which reported that homes for sale fell to the lowest recorded level in September at 40% of that seen in September 2008 and 75% of that seen in September 2000.

"Housing continues to be a bright spot during an otherwise challenging economic time for many U.S. households," said Frank Martell, president and CEO of CoreLogic. "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."

"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," said Dr. Frank Nothaft, chief economist at CoreLogic. "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."

At the local level, markets continue to vary. For instance, Phoenix is seeing a severe shortage of for-sale homes and prices increased by 11.1% in September. Meanwhile, the New York-Jersey City-White Plains metros recorded a minimal 0.3% increase in home prices, as people opt for more space and privacy in less densely populated areas, according to the report.

Click here to view more from the report.

Published
Nov 03, 2020
FAR Establishes Borrower Engagement Division

Finance of America Reverse LLC announced its formally established Borrower Engagement Division.

Industry News
Oct 22, 2021
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021