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Home Prices Up and Not Coming Down Anytime Soon

The CoreLogic Home Price Index (HPI) and HPI Forecast for April 2017 was released Tuesday showing home prices up both in year-over-year and month-over-month. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from forecasts from a state-level by weighting indices according to the number of owner-occupied households from each state.

According to the CoreLogic HPI, prices nationwide, including distressed sales, increased by 6.9 percent year-over-year. Month-over-month sales increased by 1.6 percent in April 2017 compared to March 2017.

“Mortgage rates in April dipped back to their lowest level since November of last year, spurring home-buying activity,” said Dr. Frank Nothaft, Chief Economist for CoreLogic. “In some metro areas, there has been a bidding frenzy as multiple contracts are placed on a single home. This has led home-price growth to outpace rent gains. Nationally, home prices were up 6.9 percent over the last year, while rent growth for single-family rental homes recorded a 3 percent rise through April, according to the CoreLogic Single-Family Rental Index.”

Home prices are predicted to increase by 5.1 percent on a year-over-year basis from April 2017 to April 2018 according to the forecast. On a month-over-month basis, home prices are expected to increase by 0.7 percent from April 2017 to May 2017.

“Interest rates on fixed-rate mortgages are down by one-fourth of a percentage point since mid-March, just in time to support the spring home-buying season,” said Frank Martell, President and CEO of CoreLogic. “Some metro areas have low for-sale inventory, short time-on-market trends and homes that sell above the list price. Geographically, gains were strongest in the West with Washington and Utah posting double-digit gains.”

Washington had the largest change in home prices, coming in at 12 percent HPI change year-over-year. At -3.9 percent, Wyoming’s home prices went down in the month of April.

About Author: Brianna Gilpin

Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation's leading diversified media and information services companies. To contact Gilpin, email brianna.gilpin@thefivestar.com.
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