The CoreLogic Home Price Index put up its best numbers in nearly seven years in January, with national home prices rising 9.7 percent year-over-year.
That’s the 11th consecutive month of of home price increases, and the largest yearly increase since April 2006; only Delaware and Illinois posted yearly price declines when including distressed sales.
From December to January, home prices were up 0.7 percent, but when distressed sales are excluded, the Home Price Index was up 1.8 percent.
CoreLogic Home Price Index – Good Sign for Housing
Mark Fleming, the chief economist for CoreLogic, said the strong winter performance of the Home Price Index bodes well for the spring homebuying season.
“The HPI showed strong growth during the typically slow winter season,” Fleming said. “With these gains, the housing market is poised to enter the spring selling season on sound footing.”
Interestingly, Chris DeSanto, the owner of Realty Executives in Elmwood Park, said that the home prices in his markets have been perfectly consistent with the national averages reported by CoreLogic’s Home Price Index.
“I would say they’re up 5 to 10 percent,” DeSanto said.
The increases, DeSanto explained, have three big causes: demand for homes is high, with today’s historically low interest rates; housing inventory is low, and the best available housing stock is attaining premium status; and finally, Fannie Mae and Freddie Mac have begun rehabbing their REO properties in the area, weakening the negative impact of distressed properties in the area.
And what can we expect for February? According to CoreLogic’s Pending Home Price Index, which uses MLS data to anticipate the next month’s data, home prices in February will rise 11.3 percent year-over-year and 1.8 percent from January. Take a look at our infographic below for some perspective on the recent home-price increases: