Home Prices Up 6.8% Year-Over-Year as Tight Supplies Drive Market

Home prices nationwide, including distressed sales, increased year-over-year by 6.8 percent in February 2016, compared with February 2015, according to CoreLogic’s latest update.

The month-over-month increase was 1.1 percent in February 2016.
CoreLogic is forecasting home prices to increase by 5.2 percent on a year-over-year basis from February 2016 to February 2017,
Tight inventories of homes for sale across the national are still pushing up prices. That’s a good thing if you already own a home in a thriving sellers’ market. It’s not necessarily a good thing if you’re a first-time prospective home buyer trying to enter the market, or a current homeowner seeking to upsize.
“Home prices continue to rise across the U.S. with every state posting year-over-year gains during the last 12 months,” said Anand Nallathambi, president and CEO of CoreLogic. “Improved economic conditions and tight inventories continue to drive exceptionally strong gains in many markets, especially for homes priced below $500,000.”
Nonetheless, fixed-rate mortgage rates below 4 percent and a strong jobs market should “sustain home purchases during the spring and support the 5.2 percent home price appreciation CoreLogic has projected for the next year,” says Dr. Frank Nothaft, chief economist for CoreLogic.
Including distressed sales, the U.S. has seen 48 consecutive months of year-over-year increases, CoreLogic says. However, “the national increase is no longer posting double-digits.”
National single-family home prices are forecast to reach a new peak level in May 2007.

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