CoreLogic recently released their May Home Price Index, which showed gains month-over-month-and year-over-year on a national level.
From April 2017 to May 2017, home prices have increased 1.2 percent; on a yearly scale, they have increased 6.6 percent. CoreLogic is predicting that home prices will continue to rise into June 2017 another 0.9 percent. They are also predicting that May 2018 will show year-over-year growth at 5.3 percent.
According to Frank Nothaft, Chief Economist at CoreLogic, tight inventory is driving up the price of homes throughout the country. Frank Martell, President and CEO of CoreLogic, also believes prices will continue to rise.
“For current homeowners, the strong runner up in prices has boosted home equity and, in some cases, spending. For renters and potential first-time homebuyers, it is not such a pretty picture. With price appreciation and rental inflation outstripping income growth, affordability is destined to become a bigger issue in most markets.”
Regionally, there were a few metros that showed exceptional year-over-year growth. Denver held the national high, at a 9.2 percent increase year-over-year. Las Vegas, Nevada, was tied for second place with an increase of 7.3 percent.
Three cities in California also made the list: San Diego, Los Angeles, and San Francisco at 7.3 percent, 6.4 percent, and 4.6 percent respectively
On the east coast, Boston led the year-over-year increase at 6.3 percent. Washington D.C. was close behind, with a rise in home prices sitting at 4.7 percent. Miami brought up the rear win an increase of 4.4 percent. Other notable metros with were Chicago, with a 4.4 percent increase, and Houston, with a 2.2 percent increase.
The CoreLogic HPI is built on industry-leading public record, servicing and securities real-estate databases and incorporates more than 40 years of repeat-sales transactions for analyzing home price trends.