Home prices grew 4% year-over-year in December according to CoreLogic's monthly Home Price Index (HPI). The California-based data firm predicts annual home price growth will be 5.2% through December 2020.
Selling a home was profitable in 2019 according to the Year-End 2019 U.S. Home Sales Report from ATTOM Data Solutions. ATTOM says the typical home seller earned $65,500, a 34% return on investment compared to their original purchase price, up from 31.4% last year and 27.4% in 2017. Last year brought the highest average home seller ROI since 2006.
Mortgage interest rates dropped to their second lowest point in three years according to Freddie Mac's Primary Mortgage Market Survey for the week ending January 30, and a significant number of Americans might want to consider refinancing. The latest Mortgage Monitor Report from Black Knight Financial Services (BKFS) shows that there are 9.4 million mortgage holders in good standing who have at least 20% equity in their homes, credit scores of 720 or higher and who could cut their current interest rate by at least 0.75% by refinancing. Using national median numbers, BKFS says those homeowners could save an average of $264 per month.
There's a downside amidst the ample positive housing news: lack of homes for sale. National Association of Realtors® Chief Economist Lawrence Yun says, “Conditions for buying are favorable and will likely continue in 2020." But CoreLogic Chief Economist Frank Nothaft cautions that inventory will be an issue, saying, “Moderately priced homes are in high demand and short supply, pushing up values and eroding affordability for first-time buyers.”
Sources: CoreLogic, ATTOM Data Solutions, Black Knight Financial Services, National Association of Realtors®Share:
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