IRVINE, Calif.—Home prices were up during August both month-over-month and year-over-year, according to the latest CoreLogic Home Price Index (HPI) and HPI.
Home prices nationwide, including distressed sales, increased year over year by 6.2% in August 2016 compared with August 2015 and increased month over month by 1.1% in August 2016 compared with July 2016, according to the CoreLogic HPI.
The CoreLogic HPI Forecast indicates that home prices will increase by 5.3% on a year- over-year basis from August 2016 to August 2017, and on a month-over-month basis home prices are expected to increase by 0.4% from August 2016 to September 2016, CoreLogic said.
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.
“Home prices are now just 6% below the nominal peak reached in April 2006,” said Dr. Frank Nothaft, chief economist for CoreLogic. “With prices forecasted to increase by 5% 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,” said Anand Nallathambi, president and CEO of CoreLogic. “This continued price appreciation is contributing to a growing affordability crisis in many markets around the country.”