CoreLogic: Home Prices Up 6.3% Year over Year

CoreLogic, Irvine, Calif., said U.S. home prices rose by 6.3 percent year over year in November.  

The company’s Home Price Index also said home prices increased by 0.5 percent from October. The data include distressed sales.  

Home price appreciation was strongest in Colorado (10.4 percent) and Washington (10.2 percent), the only states to post double-digit growth, followed by Oregon (9.0 percent), Idaho (8.5 percent) and Nevada (7.7 percent). At the other end three states posted negative home price growth year over year: Mississippi (-3.0 percent), Louisiana (-1.6 percent) and New Mexico (-0.7 percent).  

“Heading into 2016, home price growth remains in its sweet spot as prices have increased between 5 and 6 percent on a year-over-year basis for 16 consecutive months,” said Frank Nothaft, CoreLogic chief economist. “Regionally we are beginning to see fissures, with slowdowns in some Texas and California markets, but the northwest and southeast remain on solid footing.”  

Looking ahead, the CoreLogic HPI Forecast suggests home prices could increase by 5.4 percent on a year-over-year basis from through this November; on a month-over-month basis home prices are expected to remain flat from November to December.  

“Many factors, including strong demand and tight supply in many markets, are contributing to the long-sustained boom in prices and home equity which is a very good thing for those owning homes,” said CoreLogic President and CEO Anand Nallathambi. “On the flip side, prices have outstripped incomes for several years in a number of regions so, as we enter 2016, affordability is becoming more of a constraint on sales in some markets.”