CoreLogic: Home Prices Could Hit Peak Level By 2017

 

CoreLogic, Irvine, Calif., said home prices continue to rise in August and predicted home prices would completely recover from their recession lows by 2017.

The company’ Home Price Index said home prices nationwide, including distressed sales, increased year over year by 6.2 percent in August compared to a year ago and increased month over month by 1.1 percent.

“Home prices are now just 6 percent below the nominal peak reached in April 2006,” said Frank Nothaft, chief economist for CoreLogic. “With prices forecasted to increase by 5 percent over the next year, prices will be back to their peak level in 2017.”

The CoreLogic HPI Forecast indicates home prices should increase by 5.3 percent on a year-over-year basis through August 2017; month-over-month, prices are expected to increase by 0.4 percent through September.

“Housing values continue to rise briskly on stronger fundamental and investor-fueled demand, as well as lack of adequate supply,” said Anand Nallathambi, president and CEO of CoreLogic. “This continued price appreciation is contributing to a growing affordability crisis in many markets around the country.”