CoreLogic’s February Home Price Index
(HPI) essentially echoed that the price report last week from Black Knight. The
company said that its index recorded its highest annual growth since 2006 at
10.4 percent.
Demand continues to clash with an historically low supply
creating affordability challenges, especially as mortgage rates also begin to
rise. The HPI increased 1.2 percent on a month-over-month basis. Those challenges have begun to push
homebuyers away from high-cost metro areas as the spring homebuying season
looms. The number of
homebuyers in the top 10 metros with the largest net out-migration – including
West Coast metros like Los Angeles, San Francisco, and San Jose – who
chose to move to another metro
increased to 21 percent in 2020, up 3 percentage points from 2019. This sentiment is reflected in CoreLogic’s recent
consumer survey, which found that 57 percent of current non-homeowners on the
West Coast feel the home options in their area are not at all affordable.

 

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