Home prices continued to rise in December, on both month-over-month and year-over-year bases, according to the latest Home Price Index report from CoreLogic.
Compared to the end of 2015, home prices in December finished 7.2 percent higher nationally. That figure includes distressed sales. Month-over-month, prices were up by 0.8 percent, compared to November.
Washington and Oregon showed the largest yearly increases, with prices up more than 10 percent in those markets compared to December 2015. The lowest annual increases were in Maine and Alaska, which posted prices that were 0.2 and 0.3 percent higher, respectively. Wyoming was the only state to see a drop in prices since a year ago. Prices there were .03 percent lower.
Denver led metro areas in home price growth since 2015. Homes there were up 10 percent from last year. Boston, Los Angeles, and Miami were close behind, wit prices up almost 7 percent in each of hose markets
The CoreLogic HPI also predicted that home prices will increase by 4.7 percent on a year-over-year basis by December 2017, but should remain largely flat when numbers comparing January to December come out in March.
While the numbers have been regularly up for the past several months, they’re still short of pre-recession peaks.
“As of the end of 2016, the CoreLogic national index was 3.9 percent below the peak reached in April 2006,” said Frank Nothaft, Chief Economist for CoreLogic. “We expect our national index to rise 4.7 percent during 2017, which would put homes prices at a new nominal peak before the end of this year.
Anand Nallathambi, President and CEO of CoreLogic, said that 2016 “ended with a bang,” with home price growth led largely by major metro areas.
“We expect prices to continue to rise just under 5 percent in 2017 buoyed by lack of supply and continued high demand,” he said.