Skip to main content

HPI Forecasts High Prices Deter Prospective Buyers

Katie Jensen
Jul 06, 2021

HPI Forecast for May 2021 shows the converging pressure of severe inventory shortages and high demand leads home prices to hit record highs.

The CoreLogic Home Price Index (HPI) and HPI Forecast for May 2021 shows the converging pressure of severe inventory shortages and high demand leads home prices to hit record highs.  

Home prices increased 15.4% year-over-year in May 2021, the highest year-over-year increase for the month of May since 2005. 

Home prices are expected to increase only 3.4% by May 2022, as affordability challenges push more prospective home buyers out of the market. On a month-over-month basis, home prices increased 2.3% compared to April 2021. 

Thanks to low borrowing rates, millennials and Gen Z buyers continue to participate through a white hot market, although high prices are likely to deter the number of prospective buyers. First time and low-income buyers are even more likely to be pushed out of the market due to rising prices. 

Currently, 82% of borrowers cite housing affordability as a key problem, according to the CoreLogic Survey, and 33% of respondents stated they would wait to buy or not buy at all rather than make sacrifices on their purchase. 

Dr. Frank Nothaft, chief economist at CoreLogic, said, “There are marked differences in today’s run up in prices compared to 2005, which was a bubble fueled by risky loans and lenient underwriting. Today, loans with high-risk features are absent and mortgage underwriting is prudent. However, demand and supply imbalances — fueled by a drop in mortgage rates to less than one-half what they were in 2005 and a scarcity of for-sale homes — has fed the latest run up in sales prices.”

For more information about CoreLogic, provider of property insights and solutions, visit

Jul 06, 2021
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021