Home prices nationwide grew by more than 7% year over year in November, according to new data from CoreLogic — and the analytics firm projects that prices will keep growing.
Home prices, including distressed sales, jumped 7.1% annually in November. Prices increased 1.1% month over month, according to the CoreLogic Home Price Index.
CoreLogic’s HPI Forecast projects that home price growth will slow over the coming year. Still, it’s projected prices will increase by 4.7% from November 2016 to November 2017. The forecast is a projection of home prices using the CoreLogic HPI and other economic indicators.
“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,” said Dr. Frank Nothaft, chief economist for CoreLogic. “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 continue to march higher, with home prices in 27 states above their pre-crisis peak levels,” said Anand Nallathambi, president and CEO of CoreLogic. “Nationally, the CoreLogic Home Price Index remains 4 percent below its April 2006 peak, but should surpass that peak by the end of 2017.”
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