IRVINE, Calif.—Home prices through November 2016 were up both year over year and month over month, according to the latest CoreLogic Home Price Index (HPI) and HPI Forecast.
Home prices nationwide, including distressed sales, increased year over year by 7.1% in November 2016 compared with November 2015 and increased month over month by 1.1% in November 2016 compared with October 2016, according to the CoreLogic HPI.
CoreLogic said its HPI Forecast indicates that home prices will increase by 4.7% on a year-over-year basis from November 2016 to November 2017, while on a month-over-month basis home prices are expected to increase by 0.1% from November 2016 to December 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.
“Last summer’s very low mortgage rates sparked demand, and with for-sale inventories low, the result has been a pickup in home-price growth,” said Dr. Frank Nothaft, chief economist for CoreLogic, in a statement. “With mortgage rates higher today and expected to rise even further in 2017, our national Home Price Index is expected to slow to 4.7% year over year by November 2017.”
“Home prices continue to march higher, with home prices in 27 states above their pre-crisis peak levels,” added Anand Nallathambi, president and CEO of CoreLogic. “Nationally, the CoreLogic Home Price Index remains 4% below its April 2006 peak, but should surpass that peak by the end of 2017.