Home prices nationwide, including distressed sales, increased year over year by 18% in July 2021 compared with July 2020 and increased month over month by 1.8% in July 2021 compared with June 2021.
Forecast Prices Nationally
The CoreLogic HPI Forecast indicates that home prices will increase on a month-over-month basis by 0.7% from July 2021 to August 2021, and on a year-over-year basis by 2.7% from July 2021 to July 2022.
Here is Frank Martell's, President and CEO of CoreLogic, explanation: “Home price appreciation continues to escalate as millennials entering their prime home buying years, renters looking to escape skyrocketing rents and deep-pocketed investors drive demand. On the supply side, it is also the result of chronic under building, especially of affordable stock. This lack of supply is unlikely to be resolved over the next 5 to 10 years without more aggressive incentives for builders to add new units.” It's curious how conservative forecasts remain despite recent gains, but Chief Economist for CoreLogic Dr. Frank Nothaft eludes to why forecasts remain low: “July’s annual home price growth was the most that we have ever seen in the 45-year history of the CoreLogic Home Price Index. This price gain has far exceeded income growth and eroded affordability. In the coming months this will temper demand and lead to a slowing in price growth.” Looking Ahead A recent CoreLogic survey of consumers looking to buy homes shows that, on average, 65.8% of respondents across all age cohorts strongly prefer standalone properties compared to other property types. Given the widespread demand, and considering the number of standalone homes built during the past decade, the single-family market is estimated to be under supplied by 4.35 million units by 2022. Demand will remain high as supply simply can't keep up. Locally Denver and all of our Colorado Front Range Markets continue to be one of the best markets for Home Price Appreciation outpacing the national average in July by more than a full percent.
