The Case-Shiller index, which measures the average change in value of residential real estate, suggests that not only are housing prices on the rise, but they won’t be coming down any time soon. The Case-Shiller index also shows that housing prices are at a 6-year high. Home prices across the country increased by 7% since 2019, which represents the largest twelve-month increase since 2014; most economists predicted housing prices would increase by 5.4%.
With the exception of Detroit, 19 of 20 major cities saw a significant increase in housing prices over the last year; the major winners were San Diego, Seattle, and Phoenix. While sales themselves may slow as COVID rears its ugly head again, but it’s incredibly unlikely that housing prices will decrease as a result of the slowdown.
This is particularly notable because these record-setting increases are taking place during a once-in-a-century catastrophe. The driving force behind the surge in prices are historically low mortgages paired with record low inventory.
At the Chernov Team we understand that knowledge is power, and knowledge of how the market is behaving is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.