National Home Prices Rise Higher in July

House fo Sale Two BHWith the July 2016 release, the CoreLogic Home Price Index reported an increase of 1.1 percent for the national single family combined tier, which included distressed sales, over the prior month. CoreLogic Home Price Index also recorded a year-over-year increase of 6.0 percent nationally for the single family combined tier, which included distressed sales as well.

Additionally, the report showed that national home prices for single family homes, including distressed sales, are forecasted to rise by 0.4 percent for the month of August 2016. Likewise, CoreLogic states that for year-over-year, national home prices for single family homes, including distressed sales, are forecasted to rise by 5.4 percent by July 2017.

Including distressed sales, CoreLogic also notes that the U.S. has experienced 54 consecutive months of year-over-year price increases. The national increase, however, is no longer posting double-digits. Despite that increase, though, including distressed sales, national single family home prices remain 6.1 percent below peak values recorded in April 2006. However, CoreLogic does report that including distressed sales, national single family home prices are forecasted to reach a new peak level in October 2017.

“If mortgage rates continue to remain relatively low and job growth continues, as most forecasters expect, then home purchases are likely to rise in the coming year,” says Dr. Frank Nothaft, Chief Economist for CoreLogic. “The increased sales will support further the price appreciation, and according to the CoreLogic Home Price Index, home prices are projected to rise about 5 percent over the next year.”

The report states that 21 states have reached new highs this month for home appreciation. These include Arkansas, Colorado, Hawaii, Iowa, Indiana, Kentucky, Louisiana, Massachusetts, Montana, North Carolina, North Dakota, Nebraska, New York, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Utah, Washington, and finally Wyoming. In contrast, only one state showed negative home price appreciation, Connecticut with negative 1.2 percent.

Including distressed sales, five states registering largest year-over-year home price appreciation in July included Oregon with 11.2 percent, Washington with 10.2 percent, Colorado with 9.3, West Virginia with 8.6 percent, and Utah with 7.9 percent. If distressed sales are taken out of the equation though, the five states with the largest year-over-year home appreciation in July tell a different story. These look like West Virginia with 11.0 percent, Oregon with 10.7 percent, Washington with 9.7 percent, Colorado with 9.0 percent, and Nevada with 7.2 percent.

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