Home prices continued their upward trend in October, and are forecasted to continue rising into next month and next year, according to the Home Price Index and HPI Forecast by CoreLogic, a property information, analytics and data-enabled solutions provider.
Home prices, including distressed sales, increased annually by 6.7% in October 2016, and increased 1.1% from September, according to the index.
“While national home prices increased 6.7%, only nine states had home price growth at the same rate of growth or higher than the national average because the largest states, such as Texas, Florida and California, are experiencing high rates of home price appreciation,” CoreLogic Chief Economist Frank Nothaft said.
Click to Enlarge
CoreLogic forecasts that home prices will increase by 4.6% year-over-year, and by 0.2% by next month.
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.
“Home prices are continuing to soar across much of the U.S. led by major metro areas such as Boston, Los Angeles, Miami and Denver,” CoreLogic President and CEO Anand Nallathambi said.
“Prices are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates,” Nallathambi said. “Looking forward to next year, nationwide home prices are expected to climb another 5% in many parts of the country to levels approaching the pre-recession peak.”
In fact, it seems the market already hit pre-recession levels and the Federal Housing Administration even increased conforming loan limits for 2017 due to these high home prices.