Home prices have risen 6.8% year over year as of February, with additional gains expected in the coming 12 months.
Excluding distressed sales, the month over month increase in February 2016 was 1.1% nationally, according to data from property information, analytics and data-enabled services provider CoreLogic.
And the increase is expected to continue through the near term.
By February 2017, CoreLogic is projecting a 5.2% year-over-year increase, driven in part by sustained low mortgage rates and steady job creation across the U.S. economy.
“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 percent home price appreciation CoreLogic has projected for the next year.”
The reverse mortgage market has struggled to regain volume lost in recent years due to regulatory changes, but an uptick in home prices is one positive indicator for growth. In particular among homes priced at less than $500,000, a rise is expected, according to CoreLogic.
“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.”
Written by Elizabeth Ecker