Spread the news to your seller contacts sitting on the fence: Home prices nationwide, including distressed sales, rose year over year by 7.1 percent in November 2016 compared to November 2015, CoreLogic’s Home Price Index shows.
Expect more price jumps ahead too, although at a more modest pace. Home prices likely will increase by 4.7 percent on a year-over-year basis from November 2016 to November 2017, according to CoreLogic’s forecasts.
“Last summer’s very low mortgage rates sparked demand, and with for-sale inventories low, the result has been a pickup in home-price growth,” says Frank Nothaft, CoreLogic’s chief economist. “With mortgage rates higher today and expected to rise even further in 2017, our national Home Price Index is expected to slow to 4.7 percent year-over-year by November 2017.”
Home prices in 27 states are now above their pre-crisis peak levels, says Anand Nallathambi, president and CEO of CoreLogic. Oregon had the largest gain of any other state, with a 10.3 percent year-over-year increase in November, followed by Washington (10 percent). Nevada home prices remain the farthest below their all-time high, still nearly 32 percent below their March 2006 peak.
Nationwide, the CoreLogic Home Price Index still remains 4 percent below its April 2006 peak. “It should surpass that peak by the end of 2017,” Nallathambi predicts.
Source: “Home Price Index Highlights: November 2016,” CoreLogic (Jan. 3, 2017)