CoreLogic: April U.S. Home Price Up 6.9 Percent

CoreLogic, Irvine, Calif., said home prices jumped by 1.6 percent month over month in April and by nearly 7 percent year over year, as multiple offers in many markets push prices upward amid fluctuating mortgage rates.

The company’s monthly Home Price Index report said home prices nationwide, including distressed sales, increased year over year by 6.9 percent in April from a year ago by 1.6 percent from March.

“Mortgage rates in April dipped back to their lowest level since November of last year, spurring home-buying activity,” said CoreLogic Chief Economist Frank Nothaft. “In some metro areas, there has been a bidding frenzy as multiple contracts are placed on a single home. This has led home-price growth to outpace rent gains.”

Looking ahead, the CoreLogic HPI Forecast indicates home prices could increase by 5.1 percent through April 2018 and by 0.7 percent in May.

“Interest rates on fixed-rate mortgages are down by one-fourth of a percentage point since mid-March, just in time to support the spring home-buying season,” said Frank Martell, president and CEO of CoreLogic. “Some metro areas have low for-sale inventory, short time-on-market trends and homes that sell above the list price. Geographically, gains were strongest in the West with Washington and Utah posting double-digit gains.”