January 2019 CoreLogic Home Prices Up 4.4% Year-Over-Year

CoreLogic's Home Price Index (HPI) shows that home prices in the USA are up 4.4 % 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:

.... Fixed-rate mortgage rates have dropped 0.6 percentage points since November 2018 and today are lower than they were a year ago ....

Analyst Opinion of CoreLogic's HPI

Last month the stated year-over-year increase was published 4.7 % - which makes this month lower year-over-.year. Note that CoreLogic forecasts:

Looking ahead, the CoreLogic HPI Forecast indicates that the 2019 annual average home price will increase 3.4 percent above the 2018 annual average. On a month-over-month basis, home prices are expected to decrease by 0.9 percent from January 2019 to February 2019. The CoreLogic HPI Forecast is a projection of home prices calculated 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.

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:

The spike in mortgage interest rates last fall chilled buyer activity and led to a slowdown in home sales and price growth. Fixed-rate mortgage rates have dropped 0.6 percentage points since November 2018 and today are lower than they were a year ago. With interest rates at this level, we expect a solid home-buying season this spring.

(Click on image to enlarge)

Frank Martell, president, and CEO of CoreLogic stated:

The slowing growth in home prices was inevitable in many respects as buyers pull back in the face of higher borrowing and ownership costs. As we head into 2019, we can expect continued strong employment growth and rising incomes which could support a reacceleration in home-price appreciation later this year.

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