IRVINE, Calif.—Home prices in July were up both year over year and month over month, according to the CoreLogic Home Price Index (HPI), and the HPI Forecast is indicating more of the same is on the way.
Home prices nationwide, including distressed sales, increased year over year by 6% in July 2016 compared with July 2015 and increased month over month by 1.1% in July 2016 compared with June 2016, according to the CoreLogic HPI.
The CoreLogic HPI Forecast, meanwhile, is projecting that home prices will increase by 5.4% on a year-over-year basis from July 2016 to July 2017, and on a month-over-month basis home prices are expected to increase by 0.4% from July 2016 to August 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.
“If mortgage rates continue to remain relatively low and job growth continues, as most forecasters expect, then home purchases are likely to rise in the coming year,” Dr. Frank Nothaft, chief economist for CoreLogic, said in a forecast. “The increased sales will support further price appreciation, and according to the CoreLogic Home Price Index, home prices are projected to rise about 5% over the next year.”
“The strongest home price gains continue to be in the western region,” added Anand Nallathambi, president and CEO of CoreLogic. “As evidence, the Denver, Portland and Seattle metropolitan areas all recorded double-digit appreciation over the past year.”