Home prices nationwide, including distressed sales, were up 5.9% in May 2016 compared with May 2015 and 1.3% over April 2016, according to the CoreLogic CoreLogic (NYSE: CLGX) Home Price Index and HPI Forecast data.
The HPI Forecast indicates that home prices will increase by 5.3% on a year-over-year basis from May 2016 to May 2017, and on a month-over-month basis home prices are expected to increase 0.8% from May 2016 to June 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.
“Housing remained an oasis of stability in May, with home prices rising year over year between 5% and 6% for 22 consecutive months,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The consistently solid growth in home prices has been driven by the highest resale activity in nine years and a still-tight housing inventory.”
“Price appreciation continues to be fairly broad-based across the U.S. From a regional perspective, the Pacific Northwest continues to be the hottest area for home-price growth, with Oregon and Washington leading the way,” said Anand Nallathambi, president and CEO of CoreLogic. “The recent turbulence in financial markets should lead to modestly lower mortgage rates, which will provide even more support to the steadily improving real estate recovery.”