Home price growth accelerated considerably in July, as the housing market proved strong and resilient even as the coronavirus pandemic continued to impact other parts of the economy, according to a report released Tuesday by CoreLogic.
Home prices nationwide increased 5.5 percent from July 2019 to July 2020 – and increased 1.2 percent from June to July, according to the CoreLogic study, which also predicts that prices will increase by just 0.1 percent in August and 0.6 percent by July 2021.
“On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic,” CoreLogic President and CEO Frank Martell said. “A long period of record-low mortgage rates has opened the flood gates for a refinancing boom that is likely to last for several years. In addition, after a momentary COVID-19-induced blip, purchase demand has picked up, driven by low rates and enthusiastic millennial and investor buyers. Spurred on by strong demand and record-low mortgage rates, we expect to see more home building in 2021 and beyond, which should help support a healthy housing market for years to come.”
Washington, D.C., led the way with the biggest increase year over year at 5.3 percent, followed by San Diego (5.2 percent) and Los Angeles (4.7 percent).