Home prices, inclusive of distressed sales, rose by 7% year over year in February and 1% from January.
“Home prices and rents have risen the most in local markets with high demand and limited supply, such as Seattle, Portland and Denver,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The rise in housing costs has been largest for lower-tier-priced homes. For example, from December to February in Seattle, the CoreLogic home price index rose 12% and our single-family rent index rose 6% for all price tiers compared with the same period a year earlier. However, when looking at only lower-cost homes in Seattle, the price increase was 13% and the rent increase was 7%.”
Home prices are expected to go up by 4.5% over the next 12 months, according to CoreLogic.
“Home prices continue to grow at a torrid pace so far in 2017 and these gains are likely to continue well into the future,” said Frank Martell, president and CEO of CoreLogic. “Home prices are at peak levels in many major markets and the appreciation is being driven by a number of dynamics—high demand, stronger employment, lean supplies and affordability—that will continue to play out in the coming years. The CoreLogic Home Price Index is projecting an additional 5 percent rise in home prices nationally over the next 12 months.”
February saw increases in home prices both year-over-year and month-over-month, according to CoreLogic – and most of the increase has been from homes in the lower price tiers.