U.S. home values continue to swing back from the recession hit and have show a nearly seven percent increase in March 2016 alone, according to recent data from CoreLogic (NYSE: CLGX).
Home prices nationwide, including distressed sales, were up 6.7% in March 2016, compared with March 2015 and increased month over month by 2.1% in March 2016 compared with February 2016, according to the CoreLogic Home Price Index.
The current numbers indicate U.S home prices are now 40% higher than the 2011 trough and only 5.3% below the April 2006 peak, the CoreLogic data states.
“Housing helped keep U.S. economic growth afloat in the first quarter of 2016 as residential investment recorded its strongest gain since the end of 2012,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Low interest rates and increased home building suggest that housing will continue to be a growth driver.”
Looking ahead, the CoreLogic HPI Forecast, a projection of home prices using the CoreLogic HPI and other economic variables, is predicting an increase of 5.3% by March 2017. Home prices are expected to increase 0.7% each month, through March 2017, according to the forecast.
“Home prices reach the bottom five years ago, and since then have appreciated almost 40 percent,” said Anand Nallathambi, president and CEO of CoreLogic. “The highest appreciation was in the West, where prices continue to increase at double-digit rates.”
Written by Alana Stramowski