U.S. home prices increased 1.1% in November compared with October and increased 7.1% compared with November 2015, according to CoreLogic’s home price index report, which includes distressed sales.
Although home price appreciation is expected to slow in 2017, prices are, nonetheless, expected to rise slowly throughout the year. CoreLogic is forecasting the home prices will increase 4.7%, on average, by November.
“Last summer’s very low mortgage rates sparked demand, and with for-sale inventories low, the result has been a pickup in home price growth,” says Frank Nothaft, chief economist for CoreLogic, in a statement. “With mortgage rates higher today and expected to rise even further in 2017, our national home price index is expected to slow to 4.7 percent year over year by November 2017.”
“Home prices continue to march higher, with home prices in 27 states above their pre-crisis peak levels,” adds Anand Nallathambi, president and CEO of CoreLogic. “Nationally, the CoreLogic home price index remains four percent below its April 2006 peak but should surpass that peak by the end of 2017.”
For more, including a regional breakdown, click here.