The CoreLogic (NYSE: CLGX) Home Price Index reports a 6.2% year-over-year jump and a 1.1% increase from July in August, the Irvine, Calif. company said Tuesday.
Further increases are ahead, based on the CoreLogic HPI Forecast, which estimates prices will climb 5.3% on a year-over-year basis from August 2016 to August 2017 and 0.4% from August to September.
“Home prices are now just 6% below the nominal peak reached in April 2006,” said Dr. Frank Nothaft, chief economist for CoreLogic. “With prices forecast to increase by 5% over the next year, prices will be back to their peak level in 2017.”
“Housing values continue to rise briskly on stronger fundamental and investor-fueled demand, as well as lack of adequate supply,” said Anand Nallathambi, president and CEO of CoreLogic. “This continued price appreciation is contributing to a growing affordability crisis in many markets around the country.”