Home prices nationwide, including distressed sales, increased by 6.8% in the month of October when compared with one year ago, according to CoreLogic’s (CLGX) latest Home Price Index.
CoreLogic’s latest Home Price Index and HPI Forecast showed that home prices rose slightly in October over the previous month, rising 1% over September.
September’s Home Price Index was also up 0.6% compared to August.
“As we move forward, the rise in home prices will need to be better correlated to family income trends over time to avoid homes becoming unaffordable for many,” Nallathambi said. “This is especially true in several metropolitan areas where home prices have grown rapidly.”
CoreLogic’s report also showed that home prices are projected to increase by 5.2% percent on a year-over-year basis from Oct. 2015 to Oct. 2016, and the projected month-over-month gain will be just 0.1% from Oct. 2015 to Nov. 2015.
“Many markets have experienced a low inventory of homes for sale along with strong buyer demand, which is sustaining upward pressure on home prices. These conditions are likely to persist as we enter 2016,” said Dr. Frank Nothaft, chief economist for CoreLogic. “A year from now, as we finish out October 2016, we expect the CoreLogic national Home Price Index appreciation to slow to 5.2%.”