October 2018 CoreLogic Home Prices Up 5.4% Year-Over-Year

CoreLogic's Home Price Index (HPI) shows that home prices in the USA are up 5.4 % year-over-year (reported up 0.5 % 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:

.... Renters really want something to call their own. However, until affordability comes back into balance, renters will have a hard time purchasing a home ....

Analyst Opinion of CoreLogic's HPI

Last month the stated year-over-year increase was published 5.6% - which makes this month lower year-over-.year. Note that CoreLogic forecasts:

Looking ahead, the CoreLogic HPI Forecast indicates home prices will increase by 4.8 percent on a year-over-year basis from October 2018 to October 2019. On a month-over-month basis, home prices are expected to decrease by 0.7 percent from October to November 2018. 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:

Rising prices and interest rates have reduced home buyer activity and led to a gradual slowing in appreciation. October's mortgage rates were the highest in seven and a half years, eroding buyer affordability. Despite higher interest rates, many renters view a home purchase as a way to build wealth through home-equity growth, especially in areas where rents are rising quickly. These include the Phoenix, Las Vegas and Orlando metro areas, where the CoreLogic Single-Family Rent Index rose 6 percent or more during the last 12 months.

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Disclaimer: No content is to be construed as investment advise and all content is provided for informational purposes only.The reader is solely responsible for determining whether any investment, ...

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