CoreLogic released its Home Price Index (HPI) and HPI Forecast for July 2016, which shows home prices are up both year-over-year and month-over-month. Home prices nationwide, including distressed sales, increased year-over-year by 6 percent and increased month-over-month by 1.1 percent, according to the CoreLogic HPI.
The CoreLogic HPI Forecast indicates that home prices will increase by 5.4 percent on a year-over-year basis in July 2017, and on a month-over-month basis home prices are expected to increase by 0.4 percent in August 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.
“If mortgage rates continue to remain relatively low and job growth continues, as most forecasters expect, then home purchases are likely to rise in the coming year,” CoreLogic Chief Economist Dr. Frank Nothaft said in the news release. “The increased sales will support further price appreciation, and according to the CoreLogic Home Price Index, home prices are projected to rise about 5 percent over the next year.”
“The strongest home price gains continue to be in the western region,” CoreLogic President and CEO Anand Nallathambi said. “As evidence, the Denver, Portland and Seattle metropolitan areas all recorded double-digit appreciation over the past year.”