CoreLogic: US Home Prices Up and Will Continue to Rise
IRVINE, Calif.—CoreLogic, a leading global property information, analytics and data-enabled services provider, today released its CoreLogic Home Price Index (HPI) and HPI Forecast data for February 2016 which shows home prices are up both year over year and month over month.
Home prices nationwide, including distressed sales, increased year over year by 6.8% in February 2016 compared with February 2015 and increased month over month by 1.1% in February 2016 compared with January 2016, according to the CoreLogic HPI.
The CoreLogic HPI Forecast indicates that home prices will increase by 5.2% on a year-over-year basis from February 2016 to February 2017, and on a month-over-month basis home prices are expected to increase 0.6% from February 2016 to March 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.
“Fixed-rate mortgage rates dropped more than one-quarter of a percentage point in the first three months of 2016, and job creation averaged 209,000 over the same period,” said Dr. Frank Nothaft, chief economist for CoreLogic. “These economic forces will sustain home purchases during the spring and support the 5.2% home price appreciation CoreLogic has projected for the next year.”
“Home prices continue to rise across the U.S. with every state posting year-over-year gains during the last 12 months,” said Anand Nallathambi, president and CEO of CoreLogic. “Improved economic conditions and tight inventories continue to drive exceptionally strong gains in many markets, especially for homes priced below $500,000.”