Recent data shows that home prices across the nation continued their upward trajectory in February. According to Cotality (formerly CoreLogic), prices rose 0.3% during the month and 2.9% on an annual basis. ICE reported a smaller 0.11% monthly increase, with their index showing annual growth slowing to 2.7% in February from 3.4% in the previous report.
What’s the bottom line? Cotality forecasts a 0.4% increase in home prices for March, with an estimated 4.2% annual gain over then next year. This aligns with other industry projections of approximately 4% appreciation over the next year. Such forecasts affirm that homeownership remains an effective means for Americans to build wealth.
For example, purchasing a $500,000 home that appreciates 4% in a year would result in a $20,000 gain in home value – a solid return on the investment.