CoreLogic: U.S. Home Prices Increased 1.0% In October

Posted by Patrick Barnard on December 01, 2015 No Comments
Categories : Residential Mortgage

U.S. home prices, including distressed sales, increased 1.0% in October compared with September and increased 6.8% compared with October 2014, according to CoreLogic's home price index (HPI) report.

Currently, the firm is forecasting that home prices will increase only 0.1% in November compared with October. In addition, it predicts that home prices will increase 5.2% from October to October 2016.

States that saw the most home price appreciation, including distressed sales, during the year ended Oct. 30 included Colorado (10.5%), Washington (9.6%), Oregon (9.4%), South Carolina (9.0%) and New York (8.6%).

Not including distressed sales, states that saw the most appreciation included Colorado (10.1%), Oregon (9.5%), New York (9.3%), South Carolina (9.3%) and Washington (8.9%).

‘Many markets have experienced a low inventory of homes for sale along with strong buyer demand, which is sustaining upward pressure on home prices,’ says Frank Nothaft, chief economist for CoreLogic, in a statement. ‘These conditions are likely to persist as we enter 2016.’

‘The rise in home prices over the past few years has largely been a healthy trend. The shadow inventory has been reduced significantly, and home equity levels are now approaching pre-recession levels,’ adds Anand Nallathambi, president and CEO of CoreLogic. ‘As we move forward, the rise in home prices will need to be better correlated to family income trends over time to avoid homes becoming unaffordable for many. This is especially true in several metropolitan areas where home prices have grown rapidly.’

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