Despite economic uncertainty, home price gains soar to 7%

by Will Mendelson

Despite the ongoing COVID-19 pandemic continuing to bring economic insecurity, new data shows home prices rose nearly 6.95% in September, the fastest rate since May 2014.

According to the latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, home prices continued to climb in September, rising nearly 7 % — up from a 5.8% annual gain in August.

According to CoreLogic, millennials and mortgage rates are bolstering the homebuying market.

“While the exploding COVID-19 infection rates suggest weighty economic uncertainty remains, housing markets continue to receive positive tailwinds, including the largest cohort of millennials, age 28 to 30 (about 15 million), are coming closer to the typical, first-time, home-buying age,” said CoreLogic deputy chief economist Selma Hepp in a statement. “Additionally, mortgage rates are expected to remain at or below 3% into 2021. These two factors will bolster the homebuying market and continue propping up home price growth. The national Case-Shiller Index surged 6.95% in September, reaching yet another new high and advancing at the fastest rate since May 2014.”

CoreLogic’s 10- and 20-city composites also both increased in September compared to August, up 4.9% and 6.6%, respectively.

Prices rose at the fastest pace in Phoenix (up 11.4% from last year), Seattle (10.1%) and San Diego (9.5%).

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