Home prices surged 18% annually in September, but those gains are expected to slow. Here’s how homeowners can benefit now. (iStock)
Following strong end-of-summer demand, home prices continued to surge entering the fall months, according to CoreLogic’s latest Home Price Index (HPI) report.
Prices rose 18% annually in September, the company reported, brought on by high demand amid a supply shortage. Home prices rose 1.1% from August to September, reaching an new record high. As a result, many homebuyers – especially first-time buyers – are being pushed out of the housing market.
However, the price increase is good news for homeowners who are seeing consistent equity gains. If you’re interested in taking cash out of your home and lowering your interest rates, visit Credible to find your personalized rate in minutes without affecting your credit score.
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Where homebuyers are purchasing homes could change
Millennials make up a large number of homebuyers in today’s market, accounting for 67% of first-time homebuyer applications and 37% of repeat buyer applications in 2021, according to a CoreLogic study. As they increasingly take over the housing market, millennials are increasing housing demand in popular tech hubs like Seattle, San Jose and Austin, CoreLogic said.
As the coronavirus pandemic subsides, the growing race to the suburbs seen over the past year could lessen, too.
“The pandemic led prospective buyers to seek detached homes in communities with lower population density, such as suburbs and exurbs,” CoreLogic President and CEO Frank Martell said. “As we head into 2022, we expect some moderation in the current pattern of flight away from urban cores as the pandemic wanes.”
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CoreLogic explained that the heightened suburbs movement was a result of pandemic-induced remote working.
“Remote work has allowed many employees to buy homes further away from their office,” CoreLogic Chief Economist Frank Nothaft said. “These homes are often in the suburbs or exurbs, where property prices and population density are lower and single-family detached housing more common.”
If you are a homeowner and have seen your home value surge, you can take advantage by cashing out your home for renovations or consolidating …….