CoreLogic: Resales, Low Inventory Drive Home Prices Up

July 6, 2016

CoreLogic, Irvine, Calif., said home prices jumped in May, buoyed by a brisk spring housing market and low housing inventory.

The company’s Home Price Index said home prices nationwide, including distressed sales, increased year over year by 5.9 percent in May from a year ago and rose sharply (1.3 percent) from April.

“The consistently solid growth in home prices has been driven by the highest resale activity in nine years and a still-tight housing inventory,” said CoreLogic Chief Economist Frank Nothaft.

Looking ahead, the CoreLogic HPI Forecast indicates that home prices could increase by 5.3 percent on a year-over-year basis through May 2017, and by 0.8 percent month-over-month.

“Price appreciation continues to be fairly broad-based across the U.S.,” said Anand Nallathambi, president and CEO of CoreLogic. “The recent turbulence in financial markets should lead to modestly lower mortgage rates, which will provide even more support to the steadily improving real estate recovery.”