IRVINE, Calif.—It’s no surprise to credit unions that are mortgage lenders, but home prices continue their upward path—and will continue to do so but not at the same pace, according to one forecast.
Analysis released by CoreLogic as part of its Home Price Index (HPI) and HPI Forecast shows that for August 2015 home prices were up both year over year and month over month.
According to the CoreLogic HPI, home prices nationwide, including distressed sales, increased by 6.9% in August 2015 compared with August 2014 and increased by 1.2% in August 2015 compared with July of 2015.
The CoreLogic HPI Forecast indicates that home prices are projected to increase by 4.3% on a year-over-year basis from August 2015 to August 2016 and remain unchanged month over month from August 2015 to September 2015. 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.
“Economic forecasts generally project higher mortgage rates and more single-family housing starts for 2016. These forces should dampen demand and augment supply, leading to a moderation in home price growth,” said Frank Nothaft, chief economist for CoreLogic. “Over the next 12 months through August 2016, CoreLogic projects its national HPI to rise 4.3%, less than the 6.9% gain over the 12 months through August 2015.”
CoreLogic’s CEO, Anand Nallathambi, added that, “Home price appreciation in cities like New York, Los Angeles, Dallas, Atlanta and San Francisco remain very strong reflecting higher demand and constrained supplies,” said Anand Nallathambi, president and CEO of CoreLogic. “Continued gains in employment, wage growth and historically low mortgage rates are bolstering home sales and home price gains. In addition, an increasing number of major metropolitan areas are experiencing ever-more severe shortfalls in affordable housing due to supply constraints and higher rental costs. These factors will likely support continued home price appreciation in 2016 and possibly beyond.”