Home prices are up on both a year-over-year and a month-over-month basis, according to a CoreLogic report for January 2017 released on Tuesday. The CoreLogic Home Price Index (HPI) shows nationwide sales, including distressed sales, jumped 6.9 percent year over year and 0.7 percent month-over-month. By state, Washington saw the largest year-over-year home price increase of 10.8 percent. Of all 50 states, Maine was the only state to experience a decline in year-over-year home prices, with a loss of 1.8 percent.
“With lean for-sale inventories and low rental vacancy rates, many markets have seen housing prices outpace inflation,” said Dr. Frank Nothaft, Chief Economist for CoreLogic. “Over the 12 months through January of this year, the CoreLogic Home Price Index recorded a 6.9 percent rise in home prices nationally and the CoreLogic Single-Family Rental Index was up 2.7 percent—both rising faster than inflation.”
Home prices have been steadily rising since 2012, and CoreLogic hasn’t been the only company reporting the trend. Last month, the Federal Housing Finance Agency released its HPI report, as covered by MReport, which showed an increase of 6.1 percent for November 2016. The National Association of Realtors additionally reported growth, with the median home price of $232,000 in December 2016, up 4 percent year-over-year.
CoreLogic data shows that this trend is to continue in 2018. CoreLogic’s HPI Forecast, a projection made with CoreLogic HPI data and other economic variables, predicts an increase of 4.8 percent on a year over year basis in January 2018 and a month over month increase of 0.1 percent in February 2017. “Home prices continue to climb across the nation, and the spring home buying season is shaping up to be one of the strongest in recent memory,” said Frank Martell, President and CEO of CoreLogic. “A potent mix of progressive economic recovery, demographics, tight housing stocks, and continued low mortgage rates are expected to support this robust market outlook for the foreseeable future.”
CoreLogic HPI and CoreLogic HPI Forecast data is an early indicator of home prices of single-family with information available the national level from to the ZIP Code level.