CoreLogic: R.I.’s July home price index rises 5.5%

THE HOME PRICE INDEX in Rhode Island increased 5.5% year over year in July. / AP FILE PHOTO/ROGELIO V. SOLIS

PROVIDENCE – The home price index in Rhode Island increased by 5.5% year over year in July, level with the national rate of home price growth in that time, CoreLogic said on Tuesday.

Rhode Island’s HPI growth was third highest in New England, behind Maine and New Hampshire.

“Lower-priced homes are sought after and have had faster annual price growth than luxury homes,” said Frank Nothaft, chief economist at CoreLogic. “First-time buyers and investors are actively seeking lower-priced homes, and that segment of the housing market is in particularly short supply.”

Other New England year-over-year HPI growth rates in July:

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  • Maine: 9.1%
  • New Hampshire: 7.1%
  • Massachusetts: 3.5%
  • Vermont: 5.3%
  • Connecticut: 2.5%

Idaho had the highest year-over-year HPI growth of any state in the country in July at 9.8%.

“On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic. A long period of record-low mortgage rates has opened the flood gates for a refinancing boom that is likely to last for several years,” said Frank Martell, president and CEO of CoreLogic. “In addition, after a momentary COVID-19-induced blip, purchase demand has picked up, driven by low rates and enthusiastic millennial and investor buyers. Spurred on by strong demand and record-low mortgage rates, we expect to see more home building in 2021 and beyond, which should help support a healthy housing market for years to come.”

CoreLogic also projected an HPI growth of 0.6% from July 2020 to July 2021, predicting a slowdown in home price growth in the country.

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