Nationwide, home prices are on the rise and have increased both annually and on a monthly basis, according to the most recent CoreLogic Home Price Index (HPI).
Including distressed sales, home prices increased by 6.2% year-over-year in April 2016, when compared to April 2015, according to the HPI. The increase month-over-month was 1.8% in April 2016.
“Low mortgage rates and a lean for-sale inventory have resulted in solid home-price growth in most markets,” said Dr. Frank Nothaft, chief economist for CoreLogic. “An expected gradual rise in interest rates and more homes offered for sale are expected to moderate appreciation in the coming year.”
Looking forward, home prices are predicted to increase by 5.3% on a year-over-year basis from April 2016 to April 2017, according to the CoreLogic HPI Forecast, and on a month-over-month basis, home prices are predicted to see an increase of 0.9% from April 2016 to May 2016.
“The appreciation in home prices over the past year reflects the gathering pace of the recovery in housing in most states and regions in the U.S.,” said Anand Nallathambi, president and CEO of CoreLogic. “The rate recovery does vary somewhat based on local conditions. Price Increase in a significant number of states in the Northeast and Mid-Atlantic regions lagged the national average with Connecticut, Maryland, Pennsylvania, West Virginia, New Jersey and Vermont registering gains of one percent or less over the past year.”
Written by Alana Stramowski