BIZ-REAL-HOME-PRICES-DA

Nationwide home prices were up 8.2% from November 2019 levels, according to a new report by CoreLogic.

U.S. home prices rose by the greatest rate in more than six years in November.

Nationwide prices were up 8.2% from November 2019 levels, according to a new report by CoreLogic.

“The housing market performed remarkably well in 2020 despite the volatile economic state,” Frank Martell, president and CEO of CoreLogic, said in the report. “While we can expect to see lingering effects of COVID-19 resurgences and subsequent shutdowns in the early months of 2021, vaccine distributions and stimulus actions should revitalize economic activity and keep home purchase demand and home price growth strong.”

Among major cities CoreLogic tracks, Phoenix had the largest year-over-year price increase of 12.6%.

Austin led home price gains in Texas with a 9.64% annual increase.

In the Dallas area, prices were almost 6% higher than a year earlier.

And prices were up 6.8% in the Fort Worth area.

The largest price hikes are coming for the most affordable homes — properties that appeal to first-time homebuyers.

“The demographic tailwind has arrived as Generation X and millennials drive housing demand,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Lower-priced home values increased about one and a half times faster than higher-priced home values in November, as first-time buyers tend to seek out homes within the lower price ranges.”

A severe shortage of homes on the market has caused competition for properties and accelerated home price growth.

CoreLogic is forecasting smaller home price increases for the new year. Nationwide prices are expected to be up 2.5% by November 2021.

Dallas-area prices are expected to have small gains this year.

And CoreLogic predicts that the Houston area will see a price decline of 1.4% by November 2021.