Home prices have appreciated for a 139th consecutive month, according to CoreLogic. Prices have now gone up by 42% since the start of the pandemic shutdowns in March 2020. These 20 metro areas are expected to see the price biggest spikes over the next year. Would-be homebuyers can’t catch a break. Rising mortgage rates have more than doubled from where they were three years ago, hitting a two-decade peak at 7.51%. But expensive debt hasn’t helped drive down home prices.
August’s home price index issued by CoreLogic revealed that home prices just rose for the 139th consecutive month on a year-over-year basis. August saw a 3.7% increase in home prices from last year, the biggest since February.
Home prices have now risen by 42% since the start of the pandemic shutdowns in March 2020, according to the real-estate data firm.
According to Selma Hepp, chief economist at CoreLogic, you can thank a healthy labor market as one of the driving reasons behind price growth. She previously told Insider that tight supply was also partly to blame for high prices. Homeowners who may have wanted to trade their property for something else are choosing to stay put and keep their lower rates.
And the tight environment isn’t expected to loosen up anytime soon. Last month Hepp forecasted that mortgage rates would end 2023 at about 6.7%, and the Fed’s commitment to keeping interest rates higher for longer offers support for that elevated view.
The list is below shows the 20 housing markets poised to see the biggest home-price jumps over the next year. It’s based on CoreLogic’s Home Price Index, which includes data from public real-estate records and more than 45 years of repeat-sales transactions to determine price trends for single-family homes. Forecasts are based on multiple metrics including home prices, the unemployment rate, real disposable income per capita, and population growth.