Local information about Breckenridge and Summit county real estate and information about what's going on in the County.
Wednesday, April 03, 2019
Home-price growth expected to pick up in year ahead
Strong spring home buying season may spur growth.
Graph courtesy of CoreLogic
Home prices have been appreciating rapidly since the housing market’s recovery, but they’ve stepped off the fast track in recent months, displaying a notable slowdown in appreciation.
ButCoreLogicpredicts a turnaround thanks to low mortgage rates, which should spur strong home buying activity this spring and nudge home prices upward.
In February, home prices revealed a modest month-over-month increase of just 0.7% – an unusually slowstartto the year, CoreLogic revealed.
“During the first two months of the year, home-price growth continued to decelerate,” said CoreLogic Chief Economist Frank Nothaft. “This is the opposite of what we saw the last two years when price growth accelerated early.”
On an annual basis the picture was slightly rosier, with a 4% increase over February 2018.
While CoreLogic predictshomeprices will backslide in March with a 0.5% decline, it expects things to pick up from there.
The dataanalyticsprovider forecasts a 4.7% jump in home-price growth from February 2019 to February 2020.
“With theFederal Reserve’s announcement to keep short-terminterest rateswhere they are for the rest of the year, we expect mortgage rates to remain low and be a boost for the spring buying season,” Nothaft said. “A strong buying season could lead to a pickup in home-price growth later this year.”