Originally published by REALTOR Magazine | December 9, 2020
Home prices at all market levels are accelerating at the fastest rates in the past six years.
Home prices typically decline when economic activity constricts—but not in 2020. The economic downturn resulting from the COVID-19 pandemic has coincided with a booming housing market. Existing-home prices for all housing types jumped 15.5% year over year in October to $313,000, according to the National Association of REALTORS®.
Home prices at all market levels are accelerating at the fastest rates in the past six years. The lowest price tier saw an increase of 10.9% year over year in October compared to 9% for the low- to middle-price tier, 8.5% for the middle- to moderate-price tier, and 7.4% for the high price tier, according to CoreLogic data.
All states showed annual price increases, but Maine led the 50 states with a 14.9% hike in appreciation. Idaho (13.1%) and Arizona (12%) followed. New York saw some of the lowest annual increases in October, but prices there were still up 2.6% year over year. On a metro level, the following large cities saw some of the highest price gains in October annually: