Buoyed by tight supplies in many markets, home prices finished 2015 with a healthy 6.3 percent year-over year gain, according to CoreLogic‘s just-released December report.
The U.S. has seen 46 consecutive months of year-over-year home price increase, including distressed sales.
However, national single-family home prices, including distressed sales, remain 7.6 percent below peak values recorded in April 2006.
Nonetheless, the outlook is still robust for home prices as mortgage rates continue to slide, even after the Federal Reserve’s first quarter-point rate hike in December. Volatility in the financial markets has caused a rush to safety in Treasuries, helping keep average mortgage rates below 4 percent.
Year-over-year, national home prices for single-family homes, including distressed sales, are forecast to rise by 5.4 percent by December 2016, CoreLogic says.
“Nationally, home prices have been rising at a 5 to 6 percent annual rate for more than a year,” says Dr. Frank Nothaft, chief economist for CoreLogic.”However, local-market growth can vary substantially from that. Some metropolitan areas have had double-digit appreciation, such as Denver and Naples, Florida, while others have had price declines, like New Orleans and Rochester, New York.”