While down from the year before, December's housing value appreciation kept churning and should climb in 2020 to a new all-time high,
Price appreciation as measured by CoreLogic's Home Price Index grew 4%
December 2019 marked the 18th straight month of annual price growth below 6%. Anticipated growth for January 2020 should stay flat, only projected at 0.1%. Even with that modest appreciation, the overall median home price would reach a new peak, besting the last recorded peak in April 2006.
"On a national level, home prices are on an upswing," Frank Martell, president and CEO of CoreLogic, said in a press release. "Price growth is likely to accelerate in 2020. And while demand for homeownership has continued to increase for millennials, particularly those in their 30s, 74% admit they have
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"Moderately priced homes are in high demand and short supply, pushing up values and eroding affordability for first-time buyers," said Frank Nothaft, chief economist at CoreLogic. "Homes that sold for 25% or more below the local median price experienced a 5.9% price gain in 2019, compared with a 3.7% gain for homes that sold for 25% or more above the median."
Broken down by the largest 100 metropolitan statistical areas in the nation by housing stock, 34% of homes were overvalued in December, while 26% were undervalued and 40% were at value. When cut down to the top 50 largest MSAs, 40% were overvalued, just 20% were undervalued and 40% were at value.
At the state level, Idaho again stayed ahead of the rest with a 9.9% annual price growth, followed by Maine at 7.9% and Wyoming at 7.7%.