CoreLogic: Home Prices up 7% Year Over Year
CoreLogic, Irvine, Calif., reported an uptick in home price appreciation in August, up by nearly 7 percent from a year ago.
The company’s Home Price Index and HPI Forecast data for August said home prices nationwide, including distressed sales, increased by 6.9 percent in August compared to a year ago and increased by 1.2 percent from July.
By state, Colorado showed the strongest home price gains year over year (10.4 percent), followed by Washington (10.3 percent), Nevada (9.3 percent), Oregon (9.1 percent) and South Carolina (8.0 percent). Only Mississippi (-0.9 percent) saw negative numbers, followed by West Virginia (0.1 percent), Louisiana (0.2 percent), Wyoming (0.6 percent) and Maryland (1.3 percent).
“Home price appreciation in cities like New York, Los Angeles, Dallas, Atlanta and San Francisco remain very strong reflecting higher demand and constrained supplies,” said Anand Nallathambi, president and CEO of CoreLogic. “Continued gains in employment, wage growth and historically low mortgage rates are bolstering home sales and home price gains. In addition, an increasing number of major metropolitan areas are experiencing ever-more severe shortfalls in affordable housing due to supply constraints and higher rental costs. These factors will likely support continued home price appreciation in 2016 and possibly beyond.”
The CoreLogic HPI Forecast suggests home prices are projected to increase by 4.3 percent on a year-over-year basis and remain unchanged month over month.
“Economic forecasts generally project higher mortgage rates and more single-family housing starts for 2016. These forces should dampen demand and augment supply, leading to a moderation in home price growth,” said CoreLogic Chief Economists Frank Nothaft.
