According to the CoreLogic Home Price Index (HPI) and HPI Forecast for May 2017, home prices are up strongly both year over year and month over month, increasing 6.6% since May 2016 and 1.2% from April to May.
“The market remained robust, with home sales and prices continuing to increase steadily in May,” says Dr. Frank Nothaft, chief economist for CoreLogic. “While the market is consistently generating home price growth, sales activity is being hindered by a lack of inventory across many markets.”
Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 5.3% on a year-over-year basis from May 2017 to May 2018, and on a month-over-month basis home prices are expected to increase by 0.9% from May 2017 to June 2017.
“For current homeowners, the strong run-up in prices has boosted home equity and, in some cases, spending,” adds Frank Martell, president and CEO of CoreLogic. “For renters and potential first-time homebuyers, it is not such a pretty picture. With price appreciation and rental inflation outstripping income growth, affordability is destined to become a bigger issue in most markets.”