Home prices nationally increased 18.1% in August compared with the 2020 month, setting the largest 12-month growth since CoreLogic started its Home Price Index in 1976.
Consistent with other recent industry observers' reports, CoreLogic expects gains to slow to a 2.2% increase by August 2022. But ongoing affordability challenges will continue to deter entry-level buyers.
Ongoing affordability challenges within the supply-constricted market have also been exacerbated by an influx in home buying activity from investors. As the home purchase market continues to boom and buoy the post-pandemic economy, these market factors are unevenly affecting access for some buyers. This is reflected in a recent CoreLogic consumer survey, where 59% of consumers looking to purchase a home reported combined household earnings of at least six figures, compared to the 10% of consumers looking to purchase earning less than $50,000.
“Home prices continue to escalate at a torrid pace as a broad spectrum of buyers drive demand for a limited supply of homes,” said Frank Martell, president and CEO of CoreLogic. “We expect to see the trend of strong price gains continue indefinitely with large amounts of capital chasing too few assets.”
To see CoreLogic charts that deem which metro markets are overvalued and which ones are at the risk of home price decline ...