The projections for 2021 are not going to be as ebullient at the end of 2021 as they ended in 2020, according to CoreLogic.
The report stated that “Home prices nationwide, including distressed sales, increased year over year by 9.2% in December 2020 compared with December 2019 and increased month over month by 1% in December 2020 compared with November 2020.”
“The housing market exceeded expectations in 2020, closing out the year with the highest annual home price gain since February 2014 in December at 9.2%.”
The report further stated, “from December 2020 to January 2021, and on a year-over-year basis (prices would increase) by 2.9% from December 2020 to December 2021…the consequences of the pandemic were seen in the dwindling supply of homes — dropping, on average, 24% below 2019 levels — as homeowners delayed selling.”
The record-low mortgage rates, combined with the shortage of available inventory, produced one of the most robust markets in almost a decade.
“These factors translated to significant home price growth in 2020, surpassing the previous year’s levels with an average monthly year-over-year gain of 5.7%, compared with 3.8% in 2019.”
As stated earlier in this post, home prices increased 9.2% year-over-year in December. Not a single state reported a decline in the average price for a home. Idaho reported the highest average home price increase by 19.1%, followed by Indiana and Maine, 16.1% and 15.2%, respectively.
As expected, New York State reported one of the lowest percentages of appreciation, most certainly due to the pandemic: less than 3%. Another region hard hit was Houston, which is still reeling from the effects of multiple hurricanes, the collapse of the oil industry and the pandemic.
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Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.