The June 2020 CoreLogic Home Price Insights (CoreLogic HPI) report for June 2020 was released. In consecutive months, Idaho again finds itself as the number one state for most year-over-year home price appreciation.
According to the report, the average Idaho home price saw an increase in their value of 10.5% versus June from a year ago. This increase is down from the 11.7% increase it saw between May 2020 and May 2019. Idaho is the only state, according to the study, to have double-digit growth. Our neighbor to the north, Montana, was second in the nation with a 9.8% increase in values.
The report indicated that home prices again climbed nationally year-over-year by 4.9%, up a tenth of a point from last month’s report. Also, the report is predicting national home prices will decrease a scant 1% year-over-year between June 2020 and June 2021, which is a nearly 5% improvement from their predictions for May 2020 to May 2021. Like May’s report, the predicted decrease is the first time in nine years home values are expected to decline.
The company revised its forecasted decline from May 2020 to May 2021, as projected unemployment rates through 2020 showed improvement. Additionally, the quick recovery of home sales suggests the pandemic didn’t deter homebuyers, who continue to be motivated by historically low mortgage rates.
Dr. Frank Nothaft, Chief Economist at CoreLogic, had this to say, “Mortgage rates hit record lows this spring, which enhanced affordability for home buyers.” He continues, “First-time buyers, and millennials, in particular, have jumped at the opportunity to achieve homeownership.”
The study admitted that the low-interest rates, “coupled with a declining supply of homes for sale, could shield home price growth from the impacts of the current economic uncertainty.”
“Home price appreciation continues at a solid pace reflecting fundamental strength in demand drivers and limited for-sale inventory,” said Frank Martell, president, and CEO of CoreLogic. “As we move forward, we expect these price increases to moderate over the next twelve months. Given the economic outlook, housing remains a bright spot for the foreseeable future.”
Here in Idaho, with less than a month’s supply of inventory available locally, home prices will continue their ascent, especially as demand continues to outpace supply. It won’t be surprising to see Idaho continue its reign in the top position. If you’re looking to sell your home, there’s certainly no time like the present to capitalize on a very hot seller’s market.
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