August 5, 2020
Irvine, CA-based CoreLogic released the CoreLogic Home Price Index (HPI) and HPI Forecast for June 2020. Nationally, home prices increased by 4.9% in June 2020, compared with June 2019. Month over month, home prices increased 1%, compared with May of this year, the fastest monthly gain for the month of June since 2013.
Los Angeles County single-family home sellers experienced an average price increase of 4% over June 2019. In Orange County, prices rose 2.6%, while in the Inland Empire house prices were up 5%. Affordability constraints in San Francisco led to an annual decline in home prices of 0.2%.
Stronger home prices this summer reflect improved affordability, demographic demands, supply constraints and continued strong interest in purchasing a home, all of which supports a solid foundation and resiliency in the housing market in the face of the COVID-19 pandemic. These factors combined to keep home prices steady despite the continued pressure of the pandemic and related economic fall-out, notes CoreLogic.
“Mortgage rates hit record lows this spring, which enhanced affordability for home buyers,” said Dr. Frank Nothaft, chief economist at CoreLogic. “First-time buyers, and millennials in particular, have jumped at the opportunity to achieve homeownership.”
The forecast predicts a modest decline in home prices over the twelve months ending June 2021.
For comments, questions or concerns, please contact Dennis Kaiser