Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 7
Last updated on February 2nd, 2021 at 06:02 pm
Post-COVID-19 pandemic the U.S. housing market showed signs of slowing in May, while the home prices shot up.
According to reports of S&P CoreLogic Case Shiller U.S National Home Price NSA Index an annual gain of 4.5% in May, down from a 4.6% gain in April.
Home prices in the 10-city Composite increased 3.1% annually, down from 3.3% in the previous month. The 20-City Composite posted a gain of 3.7% year-over-year, down from 3.9% in April.
The median price of the existing home was $295,300 in June, up 3.5% annually, as prices increased in each region.
Housing inventory totaled to 1.57 million units in June, up 1.3% from May, but still down 18.2% from a year ago is the data according to reports from The National Association of Realtors (NAR)
As is always the simple case of demand and supply, the gap between the demand for housing and the country’s inventory has pushed prices up.
Many potential sellers put off listing their houses due to concerns about the state of the economy, worsening the shortage.
Many economists say home prices will continue to rise even if the labor market takes another hit from the pandemic.
Home prices won’t continue to rise forever but might continue to grow in the summer and during the rest of 2020.
Prolonged economic damage due to the pandemic could cause home prices to drop in 2021.
Forecasters predict house prices will start to drop next summer when the forbearance year will expire.
Federal regulators have offered a forbearance option to anyone with a mortgage-backed by Freddie Mac, Fannie Mae, or Ginny Mae, preventing jobless homeowners from going into foreclosure.
As more Americans are shifting towards the suburbs the possibility of price decline would be noticed in major cities.
CoreLogic expects nationwide home prices to decrease by 6.6% by May 2021.
Reference Source: CCN
