Report Shows Home Prices Up 6.9% in April
IRVINE, Calif. — CoreLogic recently released its CoreLogic Home Price Index (HPI) and HPI Forecast for April 2017 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 6.9% in April 2017 compared with April 2016 and increased month over month by 1.6% in April 2017 compared with March 2017, according to the CoreLogic HPI.
The CoreLogic HPI Forecast indicates that home prices will increase by 5.1% on a year-over-year basis from April 2017 to April 2018, and on a month-over-month basis home prices are expected to increase by 0.7% from April 2017 to May 2017. 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.
“Mortgage rates in April dipped back to their lowest level since November of last year, spurring home-buying activity,” said Dr. Frank Nothaft, chief economist for CoreLogic. “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. Nationally, home prices were up 6.9% over the last year, while rent growth for single-family rental homes recorded a 3 percent rise through April, according to the CoreLogic Single-Family Rental Index.”
“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.”