Home prices are on the rise with values increasing 5% year-over-year in September, according to Home Price Index (HPI) data released this month by CoreLogic. This growth marks the seventh consecutive increase nationally on a year-over-year basis and could mean the ailing housing market might be steadily on its way to recovery, CoreLogic says.
“Home price improvement nationally continues to outpace our expectations, growing 5% year-over-year in September, the best showing since July 2006,” said Mark Fleming, chief economist for CoreLogic.
Though distressed sales have dragged values down slightly, looking at the averages excluding those sales, CoreLogic finds a 0.5% month-over-month increase in September.
This slight increase exhibits the seventh consecutive increase in home values on a month-over-month basis, in turn reinforcing CoreLogic’s October forecast of a 5.7% year-over-year rise in home values compared to 2011.
According to the report, all but seven states are experiencing year-over-year home price gains, resulting in CoreLogic’s positive forecast for October as a month for growth, just as values are expected to hit a seasonal slowdown moving into winter.
“Home prices are responding to better market fundamentals, such as reduced inventories and improved buyer demand,” said Anand Nallathambi, president and CEO of CoreLogic. “So far this year, we’re seeing clear signs of stabilization and improvement that show promise for a gradual recovery in the residential housing market.”
Written by Jason Oliva