Home prices nationwide, including distressed sales, surged 6.3% in November 2015 compared with November 2014 and increased by 0.5% in November 2015 compared with October 2015, according to the latest report from CoreLogic.
“Many factors, including strong demand and tight supply in many markets, are contributing to the long-sustained boom in prices and home equity which is a very good thing for those owning homes,” said Anand Nallathambi, president and CEO of CoreLogic.
“On the flip side, prices have outstripped incomes for several years in a number of regions so, as we enter 2016, affordability is becoming more of a constraint on sales in some markets,” said Nallathambi.
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Next year is projected to post similar results, with the CoreLogic HPI Forecast indicating that home prices will increase by 5.4% on a year-over-year basis from November 2015 to November 2016.
On a monthly basis, home prices are expected to remain flat from November 2015 to December 2015.
The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables.
“Heading into 2016, home price growth remains in its sweet spot as prices have increased between 5 and 6 percent on a year-over-year basis for 16 consecutive months,” said Frank Nothaft, chief economist for CoreLogic. “Regionally we are beginning to see fissures, with slowdowns in some Texas and California markets, but the northwest and southeast remain on solid footing.”