CoreLogic - US Prices Up Almost 7 Percent From August 2014

Forecast Projects Increase of More Than 4 Percent by August 2016

According to the CoreLogic HPI, home prices nationwide, including distressed* sales, increased by 6.9 percent in August 2015 compared with August 2014 and increased by 1.2 percent in August 2015 compared with July 2015.**

The CoreLogic HPI Forecast indicates that home prices are projected to increase by 4.3*** percent on a year-over-year basis from August 2015 to August 2016 and remain unchanged month over month from August 2015 to September 2015. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Economic forecasts generally project higher mortgage rates and more single-family housing starts for 2016. These forces should dampen demand and augment supply, leading to a moderation in home price growth,” said Frank Nothaft, chief economist for CoreLogic. “Over the next 12 months through August 2016, CoreLogic projects its national HPI to rise 4.3 percent, less than the 6.9 percent gain over the 12 months through August 2015.”

“Home price appreciation in cities like New York, Los Angeles, Dallas, Atlanta and San Francisco remain very strong reflecting higher demand and constrained supplies,” said Anand Nallathambi, president and CEO of CoreLogic. “Continued gains in employment, wage growth and historically low mortgage rates are bolstering home sales and home price gains. In addition, an increasing number of major metropolitan areas are experiencing ever-more severe shortfalls in affordable housing due to supply constraints and higher rental costs. These factors will likely support continued home price appreciation in 2016 and possibly beyond.”

Full-month August 2015 national data can be found at the Home Price Index Report page.

*The home price data in this release includes distressed sales. Requests for home price data excluding distressed sales may be directed to the contacts below.

**July data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

***The forecast accuracy represents a 95-percent statistical confidence interval with a +/- 2.0 percent margin of error for the index.

Notes: This CoreLogic House Price Index report is for August. The recent Case-Shiller index release was for July. The CoreLogic HPI is a three month weighted average and is not seasonally adjusted (NSA).