Home prices throughout the country were on the rise before COVID-19 hit the U.S., according to the latest Home Price Index and HPI Forecast from CoreLogic.
As outlined in the report, home prices nationally spiked 4.1% in February year-over-year while also increasing month-to-month by 0.6%.
Economists at CoreLogic noted the strength of the market was directly related to national unemployment numbers reaching a 50-year low, mortgage rates still hovering around a 3-year low, and also a lean inventory that undoubtedly helped with the value growth overall.
Since the release of the HPI Forecast, CoreLogic has also been monitoring shifts in the housing market and economy due to the pandemic and noted that purchase activity slowed during the second half of March as unemployment numbers increased and shelter-in-place orders inevitably led to limitations in prospective buyers viewing homes.
As for a long-term outlook, many industry experts are hesitant to make any bold predictions at this point given we’ve never seen anything like this before. However, various government assistance programs and stimulus initiatives are expected to soften the blow for many U.S. households, at least in the short-term.
Posted by Mike & Michelle Grizzell on