December 2018 CoreLogic Home Prices Up 4.7% Year-Over-Year

CoreLogic's Home Price Index (HPI) shows that home prices in the USA are up 4.7 % year-over-year (reported up 0.1 % month-over-month). CoreLogic HPI is used in the Federal Reserves' Flow of Funds to calculate the values of residential real estate. The quote of the day was in this data release:

.... The slowdown in the rate of home price appreciation reflects the impact of inventory shortages and growing affordability issues in many markets ....

Analyst Opinion of CoreLogic's HPI

Last month the stated year-over-year increase was published 5.1% - which makes this month lower year-over-.year. Note that CoreLogic forecasts:

Looking ahead, the CoreLogic HPI Forecast indicates home prices will increase by 4.6 percent on a year-over-year basis from December 2018 to December 2019. Comparing the annual average HPI and HPI forecast for 2018 and 2019, average price growth is forecasted to slow from 5.8 percent to 3.4 percent. On a month-over-month basis, home prices are expected to decrease by 1 percent from December 2018 to January 2019.

CoreLogic is forecasting a slower rate of home price increases.

According to CoreLogic:

.... revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

Dr. Frank Nothaft, chief economist for CoreLogic stated:

Higher mortgage rates slowed home sales and price growth during the second half of 2018. Annual price growth peaked in March and averaged 6.4 percent during the first six months of the year. In the second half of 2018, growth moderated to 5.2 percent. For 2019, we are forecasting an average annual price growth of 3.4 percent.

Frank Martell, president and CEO of CoreLogic stated:

The slowdown in the rate of home price appreciation reflects the impact of inventory shortages and growing affordability issues in many markets. On the positive side, if home-price growth continues to moderate, interest rates remain stable and household incomes rise in 2019, it could help renters and first-time buyers to take the plunge and realize the dream of owning a home.

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