The COVID-19 pandemic has negatively affected a variety of industries, with airlines, casinos, and auto parts dealers facing the worst of it, and yet, real estate nationwide continues to grow. The CoreLogic House Price Index (HPI) report for June (a 3-month weighted average that is not seasonally adjusted) reports that as of June, housing prices are up 4.9% as compared to June 2019.
It’s undeniable, 2020 has been inundated with bad news, so we’re excited to report that those in the real estate space have been able to thrive in this year of uncertainty and chaos. In fact, this year’s growth is the fastest monthly gain in housing prices for the month of June since 2013!
What factors have been affecting nationwide housing prices? First and foremost, the housing market is built on a solid foundation, so it’s been able to remain resilient in the face of this pandemic. Pair that with mortgage rates hitting an all-time low this year, many millennials and first-time buyers were able to get their foot in the door to home ownership. And finally, with stronger home prices, we’ve seen that with improved affordability, demographic demands, and a continued interest in purchasing a home, the real estate market not onlive survives, but prospers.
It’s important to take this news with a grain of salt, and to be cognizant and strategic for the foreseeable future. CoreLogic’s HPI forecast also predicts a modest decline in home prices over the next twelve months, so this isn’t a time to become complacent, but rather, to look into the future and plan. Though home appreciation continues at a solid pace, we do expect those prices to moderate slightly for the next year or so. Perhaps this is an opportunity to watch for the downturn, so you can purchase an investment property, or maybe it’s time to seek a property management company to manage properties you already own so you can stay ahead of the curve. We’re here to guide you in all your property management needs—so get in touch, and let’s see what we can achieve together.