Another record has fallen as CoreLogic’s [1] latest Home Price Index [2] (HPI) and HPI Forecast [3] for October 2021 revealed that home prices increased by 18% year-over-year, the highest level seen since the index was started 45 years ago.
However, on a monthly basis home prices grew by 1.2% since September; a slower pace than has been seen in recent months.
Still, the survey found that at least half of respondents in every demographic still viewed homeownership as a major goal of theirs despite affordability concerns.
“New household formation, investor purchases and pandemic-related factors driving demand for the limited supply of available for-sale homes continues to propel the upward spiral of U.S. home prices,” said Frank Martell [4], President and CEO of CoreLogic. “However, we expect home price growth to moderate over the near term as many buyers take a break for the holidays.”
CoreLogic also found that in October, appreciation of detached properties (19.5%) was 6.6 percentage points higher than that of attached properties (12.9%).
Looking ahead, the report predicts that home prices will level off in the near future while predicting future annual growth of 2.5% or 0.2% per month.
“New household formation, investor purchases and pandemic-related factors driving demand for the limited supply of available for-sale homes continues to propel the upward spiral of U.S. home prices,” Martell continued. “However, we expect home price growth to moderate over the near term as many buyers take a break for the holidays.”
On a state level, the 10 areas that saw the biggest home price increase were:
- Arizona with a 28.8% change
- Idaho with a 28.7% change
- Utah with a 24.5% change
- Florida with a 24.4 change
- Nevada with a 24.2% change
- Montana with a 24.2% change
- Tennessee with a 23.6% change
- Vermont with a 21.6% change
- North Carolina with a 21.1% change
- Washington with a 20.8% change
Among major metropolitan areas, the top 10 cities that saw the largest increases were:
- Phoenix with a 30.5% change
- Las Vegas with a 24% change
- San Diego with a 21.6% change
- Denver with a 14.5% change
- Miami with a 14.7% change
- Houston with a 14.5% change
- Los Angeles with a 14.1% change
- Washington D.C. with a 11.3% change
- Boston with a 10.9% increase
- Chicago with a 8.8% increase