CoreLogic, a leading provider of consumer, financial and property data, analytical and services, is predicting that in spite of home prices increasing 4.8% year-over-year in May, that home prices will stall over the summer and they estimate decline by -6.6% by May 2021. The CoreLogic Home Price Index Forecast predicts a month-over-month price decrease of -0.1% in June, with all states expected to experience decline. CoreLogic’s chief economist, Frank Nothaft said, “by the end of summer, buying will slacken and we expect home prices will show declines in metro areas that have been especially hard hit by the recession.” The CoreLogic report points out that “Unlike the Great Recession, the current economic downturn is not driven by the housing market. While activity up until now suggests the housing market will eventually bounce back, the forecasted decline in home prices will largely be due to elevated unemployment rates.”
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