Why You Should Buy a Home in 2020

The CoreLogic HPI Forecast indicates that home prices will increase on a month-over-month basis by 0.3% from April 2020 to May 2020, and decline 1.3% on a year-over-year basic from April 2020 to April 2021. 2021 will mark the first year home prices are expected to decline in more than nine years.

Why You Should Buy a Home in 2020

“The very low inventory of homes for sale, coupled with homebuyers’ spur of record-low mortgage rates, will likely continue to support home price growth during the spring. If unemployment remains elevated in early 2021, then we can expect home prices to soften. Our forecast has home prices down in 12 months across 41 states.”

– Dr. Frank Nothaft
Chief Economist for CoreLogic

The home price acceleration in the April HPI was supported by increased homes sales in the first quarter of the year. Home price growth is expected to decelerate somewhat in May, with the CoreLogic HPI Forecast calling for a month-over-month increase of 0.3% compared with April 2020. Looking ahead, the CoreLogic HPI Forecast predicts an annual price decline of 1.3% from April 2020 to April 2021. In 2021, home prices are expected to decline for the first time in more than nine years.

Home-purchase activity slowed over March and April compared to last year as shelter-in-place orders, and an unprecedented spike in unemployment, dented home-buying activity fueled by millennials. Nationally, the for-sale inventory of entry-level homes plummeted on average 25% in April. Should this trend continue, we may see an adverse effect on home sales in the near term.

Why You Should Buy a Home in 2020

“Tight supply and pent-up demand, particularly among millennials, provides optimism for a bounce-back in the housing market purchase activity and home prices over the medium term. The next 12 to 18 months are going to be very tough times for the broader economy. As employment and economic activity begin to pick up, as it will surely do, we expect housing to be a driver in a national recovery.”

-Frank Martell
President and CEO of CoreLogic

 

Nationally, the year-over-year home price changed by 5.4%. No states posted an annual decline in home prices in April 2020.  The states with the highest increases year-over-year were Idaho (12%, Arizona (8.3%), Indiana (8%) and Missouri (8%).
Nationally, the year-over-year home price changed by 5.4%. No states posted an annual decline in home prices in April 2020.
The states with the highest increases year-over-year were Idaho (12%, Arizona (8.3%), Indiana (8%) and Missouri (8%).

 

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Top 10 Metros Change

These large cities continue to experience price increases, with Washington D.C. leading the way at 5.7% year over year.

 Why You Should Buy a Home in 2020?   Let’s connect and so that you have the information you need to make the best decision for you and your family.