According to an recent report by CoreLogic, a leading provider of consumer, financial and property data, analytics and services to business and government, home prices in the U.S. are projected to rise through July 2020 due to rising family incomes, low mortgage rates and older millennial buyers.
The property information provider forecasts annual price growth of 5.4% by July 2020 despite major housing markets experiencing declines across the U.S. in much of 2019.
“With the for-sale inventory remaining low in many markets, the pick-up in buying has nudged price growth up,” said Frank Nothaft, chief economist at CoreLogic. “If low interest rates and rising income continue, then we expect home-price growth will strengthen over the coming year.”
In Naples, the inventory of homes is down 14.8 percent compared to this time last year. The low number of available homes provides a good opportunity for sellers to enter the market to capture buyers who are looking at homes now.
“The late summer and early fall are a good time for a seller to list a home because there is a lot of interest from eager buyers,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc.
The optimistic housing market outlook comes on the heels of an August index report by the S&P CoreLogic Case-Shiller which showed home prices rising at the slowest pace since 2012. The composite home price index also said that June prices fell in New York and Miami as Seattle experienced year-over-year drops, according to MarketWatch.
“Although the rise in home prices has slowed over the past several months, we see a reacceleration over the next year to just over 5% on an annualized basis,” said Frank Martell, president and CEO of CoreLogic. “Lower rates are certainly making it more affordable to buy homes and millennial buyers are entering the market with increasing force.”
SOURCE: Share of Homes Selling at or Above List Price 10% Point Above Long-Term Average,” CoreLogic Insights blog (Aug. 27, 2019)