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October's Home Price Gains Break a Six-Year Record
Tuesday, December 1, 2020
That the rapid rise in
home prices since spring is setting near decade long highs was confirmed again
this week, this time by CoreLogic. The company says its Home Price Index (HPI)
rose 7.3 percent over the 12 months that ended in October and was the was the
fastest rate of appreciation since April 2014. Prices were up 1.1 percent
month-over-month. The company says that
home prices climbed in recent months due to heightened demand and ongoing home
supply constraints. This could grow worse if the pandemic worsens and potential
sellers hold off listing their homes. There is hope, however, for meeting some
of the demand. New home construction surged in October and the National
Association of Home Builders reported its index measuring home builder
confidence in the new home market set a third record high in as many months. While prices are rising
rapidly on a nationwide basis, local markets continue to vary. Phoenix has a severe
shortage of for-sale homes and prices there posted a 2.1 percent annual increase
in October. Meanwhile, the New
York-Jersey City-White Plains metro saw prices rise only 2.1 percent as residents
continue to seek out more space in less densely populated areas. At the state level, Maine, Idaho, and Arizona
experienced the strongest price growth in October, up 14.9 percent, 13.1 percent,
and 12 percent, respectively.
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