U.S. home prices increased 1.1% in August compared with July and increased 6.2% compared with August 2015, according to CoreLogic’s home price index report.
The report takes distressed sales into account.
Currently, CoreLogic is forecasting that home prices will increase 0.4% from August to September and by 5.3% from August until August 2017.
“Home prices are now just six percent below the nominal peak reached in April 2006,” said Frank Nothaft, chief economist for CoreLogic, in a release. “With prices forecasted to increase by five percent over the next year, prices will be back to their peak level in 2017.”
“Housing values continue to rise briskly on stronger fundamental and investor-fueled demand, as well as lack of adequate supply,” added Anand Nallathambi, president and CEO of CoreLogic. “This continued price appreciation is contributing to a growing affordability crisis in many markets around the country.”