CoreLogic released their home price index, which is an important appreciation report. The data showed that home prices rose 0.6% in February and 4.1% annually, which was an increase from 4% in the prior report. The cities with the highest annual basis increases were Washington DC (4.8%), Boston (4.5%) and Los Angeles (4.3%). While this report pre-dated the pandemic, the key takeaway is that it highlights just how strong the housing sector was beforehand.
Interestingly, CoreLogic did not report their usual forecast for appreciation over the next 12 months, due to the uncertainty caused by the coronavirus. However, before this last report, they were forecasting over 5% appreciation in the next 12 months. Housing is typically a long-term investment, and while we may see a bit of a dip in appreciation over the next year, we expect housing to lead the recovery.
