CoreLogic Predicts a Drop in Home Prices in 2021
CoreLogic, a company that provides consumer, financial and property data analytics and services to business and government, forecast a downturn in home prices in 2021. Even though COVID-19 has not affected the current housing market, the company suggests a dip this summer because of the negative impact the coronavirus has had on the economy as a whole.
June 2020 saw a rise in home prices annually 4.9% and 1% month-over-month. According to CoreLogic’s Home Price Index, June 2020 saw the highest growth rate for the month of June since 2013. Part of this growth stemmed from the respective year-ago price growth rate of 3.6%. The Home Price Index has been on the up ever since bottoming out in March 2011.
Their prediction for June 2021 is a decrease by 1% in home prices. CoreLogic feels their prediction is relatively strong because of the housing market’s reliability on entertainment, tourism and hospitality. They forecast Las Vegas to have an 11.3% drop in home prices by June 2021.
“Home price appreciation continues at a solid pace reflecting fundamental strength in demand drivers and limited for-sale inventory,” Frank Martell, president and CEO of CoreLogic, said in a press release. “As we move forward, we expect these price increases to moderate over the next twelve months. Given the economic outlook, housing remains a bright spot for the foreseeable future.”
So far, this has the housing market has not seen a dip in prices. The record-low mortgage rates and buyer demand has fueled the current market. Surprisingly, homes are very affordable even though there has been a steady price growth.
