Home prices spike in July

said the spike was led by high price growth in the Pacific Northwest and mountain states

Home prices spike in July
Home prices in July saw big gains from both the month-ago and year-ago periods, according to the CoreLogic Home Price Index.

The index revealed that home prices across the US increased 6.7% during the month from July 2016 prices. On a month-over-month basis, the increase was 0.9%.

“In July, home price growth in the Pacific Northwest and mountain states led the nation with the highest appreciation rates,” said Frank Nothaft, chief economist for CoreLogic. “The sharp increase in prices in Washington and Utah has been especially striking, with home price growth in both states accelerating by three percentage points since the beginning of this year.”

“Home prices in July continued to rise at a solid pace with no signs of slowing down,” said Frank Martell, president and CEO of CoreLogic. “The combination of steadily rising purchase demand along with very tight inventory of unsold homes should keep upward pressure on home prices for the remainder of this year. While mortgage interest rates remain low, affordability cracks are emerging as over a third of US top cities are now overvalued.”

Meanwhile, home prices are expected to increase a year and a month from July. The CoreLogic HPI Forecast indicated a 5% increase in home prices by July 2018 from July, while the monthly increase by August was forecast at 0.4%.

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