Recent data released by CoreLogic reports both a year-over-year and a month-over-month increase in home prices for March 2017.
A reported increase of 7.1 percent for home prices took record this month, forecasting a corresponding rise in home prices by 4.9 percent in 2018. The month-over-month increase is at 1.6 percent from February.
CoreLogic’s Home Price Index Forecast makes use of CoreLogic’s HPI and other economic variables to project home prices. They derive values from state-level forecasts via weighing indices according to the number of owner-occupied households for every state.
CoreLogic predicts an increase as strong as 5 percent over the next 12 months, expecting the HPI to reach the previous peak (in 2006) during the second half of 2017.
Additionally, CoreLogic’s chief economist Dr. Frank Nothaft notes that national growth of home prices has increased over the past half year while rent is getting cheaper for single-family homes.
What drives this peak-breaking march?
CoreLogic president and CEO explains, “A potent mix of strong job gains, household formation, population growth and still-attractive mortgage rates in the face of tight inventories are fueling a continuing surge in home prices across the U.S.“