U.S. home prices increased 1.1% in July compared with June and increased 6% compared with July 2015, according to CoreLogic’s home price index report.
Currently, CoreLogic is forecasting that home prices will increase 0.4% from July to August and 5.4% from July 2016 to July 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,” said Frank Nothaft, chief economist for CoreLogic, in a release. “The increased sales will support further price appreciation, and according to the CoreLogic home price index, home prices are projected to rise about five percent over the next year.”
“The strongest home price gains continue to be in the western region,” added Anand Nallathambi, president and CEO of CoreLogic. “As evidence, the Denver, Portland and Seattle metropolitan areas all recorded double-digit appreciation over the past year.”