CoreLogic also foresees strong year-over-year growth for May
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Home prices have shown strong growth both year over year and month over month in CoreLogic’s latest Home Price Index (HPI) and HPI Forecast reports.
In May, home prices increased 6.6% year over year and 1.2% month over month.
The HPI Forecast also suggested the same strong growth in both time frames – a 5.3% year-over-year gain and a 0.9% month-over-month increase.
“The market remained robust with home sales and prices continuing to increase steadily in May,” said CoreLogic Chief Economist Frank Nothaft. “While the market is consistently generating home price growth, sales activity is being hindered by a lack of inventory across many markets. This tight inventory is also impacting the rental market where overall single-family rent inflation was 3.1% on a year over year basis in May of this year compared with May of last year. Rents in the affordable single-family rental segment (defined as properties with rents less than 75% of the regional median rent) increased 4.7% over the same time, well above the pace of overall inflation.”
“For current homeowners, the strong run-up in prices has boosted home equity and, in some cases, spending,” said 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.”
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Home prices hit record highs in April – report
In May, home prices increased 6.6% year over year and 1.2% month over month.
The HPI Forecast also suggested the same strong growth in both time frames – a 5.3% year-over-year gain and a 0.9% month-over-month increase.
“The market remained robust with home sales and prices continuing to increase steadily in May,” said CoreLogic Chief Economist Frank Nothaft. “While the market is consistently generating home price growth, sales activity is being hindered by a lack of inventory across many markets. This tight inventory is also impacting the rental market where overall single-family rent inflation was 3.1% on a year over year basis in May of this year compared with May of last year. Rents in the affordable single-family rental segment (defined as properties with rents less than 75% of the regional median rent) increased 4.7% over the same time, well above the pace of overall inflation.”
“For current homeowners, the strong run-up in prices has boosted home equity and, in some cases, spending,” said 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.”
Related stories:
Home affordability near 9-year low
Home prices hit record highs in April – report
