January home prices up 10% in biggest annual gain in 7 years

CoreLogic Home Price Index increased 10% year-over-year in January

National /
Mar.March 03, 2021 11:30 AM
(iStock/Illustration by Kevin Rebong for The Real Deal)

(iStock/Illustration by Kevin Rebong for The Real Deal)

If January is any indication, the housing market isn’t showing any signs of slowing down.

CoreLogic Home Price Index, which tracks national home prices monthly, showed prices were 10 percent higher in January than a year ago. It’s the first time since November 2013 that the index has reported double-digit annual growth.

The index is seen as an early indicator of home pricing trends.

No states had an annual decline in prices. The largest price growth was in Idaho, 21 percent; Montana, 17.4 percent; Indiana, 15.3 percent; and Maine, 15.3 percent.

Month-over-month, January’s gains were less impressive, with a 0.9 percent increase compared to December.

The price growth comes as housing inventory is at historically low levels and prices are rising as demand continues to be strong.

But CoreLogic warns that persistent demand could decline in coming months. A February survey of Americans who do not own homes found that 76 percent have no plans to buy in the next six months. Still, most economists expect demand to continue and, citing the lack of homes on the market, say prices will continue to climb.

Fitch Ratings, however, noted that the shortage of available homes is artificially inflating the value of homes. The rating agency estimates that U.S. home prices are more than 5 percent higher than economic conditions justify.





    Related Articles

    arrow_forward_ios
    Igor Tulchinsky and 220 Central Park South. (Getty, Robert A.M. Stern Architects)
    First resale at 220 Central Park South closes at 23% premium for seller
    First resale at 220 Central Park South closes at 23% premium for seller
    The report of the death of cities was an exaggeration, an analysis of 30 million change-of-address forms shows. (iStock)
    Exaggerated exodus: Covid didn’t scramble people’s migration patterns
    Exaggerated exodus: Covid didn’t scramble people’s migration patterns
    Trophy trees are the latest must-have for high-net-worth individuals decorating their mansions. (iStock)
    Thought your mansion had it all? Don’t forget the trophy tree
    Thought your mansion had it all? Don’t forget the trophy tree
    Atlas Real Estate CEO Tony Julianelle and DivcoWest CEO Stuart Shiff (Atlas, DivcoWest, iStock)
    DivcoWest JV will plow $1B into single-family rentals
    DivcoWest JV will plow $1B into single-family rentals
    Home sales fall while prices reach all-time high
    Home sales fall while prices reach all-time high
    Home sales fall while prices reach all-time high
    (iStock)
    Manhattan home prices are rising as Brooklyn’s plateau
    Manhattan home prices are rising as Brooklyn’s plateau
    Inside the quest to change single-family zoning
    Inside the quest to change single-family zoning
    Inside the quest to change single-family zoning
    Douglas Elliman’s Property Management Clients Shrug Off Breach
    Elliman property management breach: “Gold mine for cybercriminals” or “nothing new”?
    Elliman property management breach: “Gold mine for cybercriminals” or “nothing new”?
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...