Home prices continued their upward trend nationwide in September, jumping 6.7%, compared to a year ago, making it the fastest year-over-year growth since May 2014, according to CoreLogic’s Home Price Index and HPI Forecast report.
The rate jumped 1.1% from August, CoreLogic noted.
Chicago home prices were up 2.4% from a year earlier in September and experienced a month-over-month change of 0.5%. CoreLogic forecasts that over the next year, that rate will jump by 1.1%.
Home value increases continued to be driven by low inventory, which hit its lowest level in September, dropping by 40% from September 2008 and by 74% when compared to September 2000.
“Housing continues to be a bright spot during an otherwise challenging economic time for many U.S. households,” Frank Martell, president and CEO of CoreLogic, said in a press release. “Those in sectors that weathered the transition to remote work successfully are now able to take advantage of low mortgage rates to purchase a home for the first time or to trade-up to a larger home.”
Dr. Frank Nothaft, chief economist at CoreLogic, said that he expects a boost in home sales once a vaccine is administered or the pandemic ends. “And if the economy’s recovery is sluggish next year, distressed sales may also add to market inventory,” he said.
Price growth is expected to grind to a halt (0.2%) by this time next year, although a robust economic recovery would likely mean improved price performance, according to the report.