CoreLogic announced last week a new prediction for how much home prices will rise over the next 12 months. As of July home prices nationally had risen 3.6% over the previous 12 months. They are now predicting that home prices will increase by 5.4% nationally from July 2019 to July 2020. Why? Lower mortgage rates and a shortage of inventory of homes for sale.
Lawrence Yun, chief economist of NAR said last week he believes that mortgage rates will drop to 3.30% by year end which would be a new record low. Because of lower rates he is predicting that home prices will re-accelerate higher.
Didn’t I predict this would happen a couple of months ago?