Home prices increased in the month of May for the 39th consecutive month, says CoreLogic, a property information and analytics provider.
According to the company’s Home Price Index (HPI), home prices nationwide — including distressed property sales — increased by 6.3 percent this May compared with May 2014. This time next year, prices will likely increase another 5.1 percent, CoreLogic predicted.
Even with mortgage rates on the rise, we’re seeing an active housing market with high demand and limited supply, CoreLogic said. Some real estate hotbeds, such as San Francisco, are recording double-digit appreciation rates over the past year. In addition, higher home prices over the past couple of years have spurred increases in new single-family construction.
“The rate of home price appreciation ticked up in May, with gains being fairly widely distributed across the country,” said Anand Nallathambi, president and CEO of CoreLogic. “Sales of newly built homes during the first five months of 2015 were up 23 percent from a year ago, and as rising values build equity for homeowners, we expect to see more existing homes offered for sale in the coming year.”
Looking ahead, CoreLogic predicted more of the same, estimating that home prices, including distressed sales, are projected to increase by 0.9 percent month over month from May 2015 to June 2015 and by 5.1 percent on a year-over-year basis from this May to May 2016. Excluding distressed sales, home prices are projected to increase by 0.8 percent month over month from May to June of this year, and by 4.7 percent from this May to May 2016.
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.
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