Home Prices Soar Amidst Mortgage Rate Decline - Is There Nowhere to Go But Up?

The Rise and Rise of Home Prices

Prices of homes across the nation are climbing at an astonishing pace fueled by a decline in mortgage rates. According to a report from CoreLogic national home prices experienced a year over year jump of 5.2% in November surpassing the previous month's gain of 4.7%.

Northeastern States Lead the Way

The Northeastern states of Rhode Island Connecticut and New Jersey have emerged as the frontrunners in the race for skyrocketing home prices. With growth rates of 11.6% 10.6% and 10.5% respectively these states are leaving the competition in the dust.

Where There's a Dip There's a Slump

Unfortunately not all areas experienced the same level of improvement. Idaho Utah and Washington D.C. saw declines in home prices in November with decreases of 1.3% 0.4% and 0.2% respectively. Looks like they'll have to catch up to the winners.

Home Prices: The Remarkable Strength of Demand

Despite the nation's affordability crunch the demand for homes remains strong driving prices to new heights. Selma Hepp chief economist for CoreLogic attributes this phenomenon to pent up demand and a shortage of new homes for sale. Looks like everyone wants a piece of the real estate pie.

Lower Mortgage Rates Higher Buying Power

Mortgage rates play a significant role in determining the purchasing power of buyers and with rates hitting record lows it's no wonder prices are rising. While there may be a slight softening in prices in the future much of it depends on supply. For now the only way is up.

Detroit Steals Miami's Crown

In a surprising turn of events Detroit has dethroned Miami as the city with the highest annual price gain. With a staggering 8.7% increase Detroit has rebounded from its lagging appreciation during the pandemic. Looks like they're making up for lost time.