CoreLogic just released their CoreLogic Home Price Index (HPI ™ ) and HPI Forecast ™ for May 2020 indicating that home prices increased by 4.8% as compared to May 2019. The increase from April to May this year was 0.7%.
However, they are predicting home prices to stall in June and then decrease over the next year.
Increasing coronavirus cases in many states across the country and continually elevated unemployment rates are increasing the volatility in many local markets.
“States like Arizona and Florida faced the perfect storm of elevated COVID-19 cases and the subsequent collapse of the spring and summer tourism market, which curtailed home-purchase demand enough to keep a lid on home price gains over the coming year. While harder-hit areas may also experience a slower rebound, the preservation of factors like low mortgage interest rates and a shortage of for-sale supply have already supported prices in some metros and may also encourage home price stabilization nationwide.”