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Fastest Home Price Gains Since 2004, Inventories Dwindling
Tuesday, November 3, 2020
CoreLogic's estimate of the annual home
price appreciation in September is not nearly as high as that published yesterday
(over 14 percent) by Black Knight on Monday, but at 6.7 percent, the CoreLogic
number is the fastest annual acceleration in their records since May 2014. The
company puts the increase in its Home Price Index (HPI) at from August to
September at 1.1 percent. Home
purchase activity remained strong in the late summer, reversing the usual
seasonal slowdown. Record-low mortgages rates continue to bring out the buyers,
including first timers and those looking to trade-up or buy a second home. At
the same time both the National Association of Realtors® (NAR) and the U.S.
Census Bureau say the national supply of
homes for sale fell to the lowest recorded level in September. It was at 40
percent of that seen in September 2008 and was 75 percent the September 2000
level. This severe inventory shortage has intensified upward pressure on home
price appreciation as consumers compete for the limited number of homes on the
market.
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