Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA are up 6.1% year-over-year (reported up 0.5% month-over-month). The year-over-year growth rate was up from the 5.6% reported last month. CoreLogic HPI is used in the Federal Reserves’s Flow of Funds to calculate the values of residential real estate.
This is the 32nd consecutive month of year-over-year increase. Sam Khater, deputy chief economist at CoreLogic stated:
Home price growth is moderating as we head into the late fall and is currently running at half the pace it was in the spring of 2014. However, there are still pockets of strength, especially in several Texas markets, as well as Seattle, Denver and other markets with strong economic fundamentals.
Anand Nallathambi, president and CEO of CoreLogic stated:
The gradual recovery of the housing market continues to be propelled by improving employment, more buyer and seller confidence, continued low rates and, in certain parts of the country, investor demand. The continued actual and projected rise in home prices confirms that fact. Based on our projections, home prices in over half the country will have reached or surpassed levels last seen at the height of the housing bubble sometime in mid-2015.
Comparison of Home Price Indices – Case-Shiller 3 Month Average (blue line, left axis), CoreLogic (green line, left axis) and National Association of Realtors (red line, right axis)
The way to understand the dynamics of home prices is to watch the direction of the rate of change – and not necessarily whether the prices are getting better or worse. Home prices are improving – and the rate of growth is now marginally improving after almost a year of declining growth rate.
Year-over-Year Price Change Home Price Indices – Case-Shiller 3 Month Average (blue bar), CoreLogic (yellow bar) and National Association of Realtors (red bar)