Prices just below 2006 levels
By Kelsey Ramirez
Home prices increased in August both monthly and annually, according to the Home Price Index and HPI Forecast released by CoreLogic, a global property information analytics and data-enabled solutions provider.
Home prices, including distressed sales, increased 6.2% annually in August and 1.1% from July, according to the CoreLogic HPI.
“Home prices are now just 6% below the nominal peak reached in April 2006,” said CoreLogic Chief Economist Frank Nothaft. “With prices forecasted to increase by 5% over the next year, prices will be back to their peak level in 2017.”
Click to Enlarge
The HPI Forecast shows that home prices will increase by 5.3% annually by August 2017, and increased 0.4% from August to September.
The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.
“Housing values continue to rise briskly on stronger fundamental and investor-fueled demand, as well as lack of adequate supply,” said CoreLogic President and CEO Anand Nallathambi. “This continued price appreciation is contributing to a growing affordability crisis in many markets around the country.”
The summer housing market saw high demand next to rising home prices, but don’t expect Fall to bring any relief. In fact, it could bring the hottest fall in a decade, new data from realtor.com shows.
Original article can be found here: http://www.housingwire.com/articles/38199-corelogic-expects-home-prices-to-peak-in-2017