Get Ready for Home Price Increases Next Year
After price appreciation hit the brakes during much of 2019, a new CoreLogic report suggests that home price growth will increase 5.4% by July 2020.
“With the for-sale inventory remaining low in many markets, the pick-up in buying has nudged price growth up,” Frank Nothaft, chief economist at CoreLogic, said in the report. “If low interest rates and rising income continue, then we expect home-price growth will strengthen over the coming year.”
How much room home prices have to grow remains an open question. CoreLogic estimated that the real-estate markets in nearly one in four metropolitan areas were undervalued. CoreLogic defines an undervalued market as one where home prices are at least 10% below what it determines to be the sustainable level where supply and demand are balanced.