CoreLogic: Home prices up 6.3% year-over-year in Nov.
WASHINGTON (1/6/16)--The CoreLogic Home Price Index increased 6.3% on a year-over-year basis in November. Monthly growth was 0.5%, which marked the 11th consecutive month of gains (Moody’s Jan. 5).
According to CoreLogic, despite good numbers in the job market, the housing market is “starting to sputter.” House prices are 38% above their lowest point in March 2011 but remain 6% below their peak set in April 2006, according to the latest Home Price Index.
House prices reached new highs in eight states: Colorado, Hawaii, Montana, Nebraska, New York, Tennessee, Texas and Wyoming. House prices declined in three states: Louisiana (-1.6%), Mississippi (-3%) and New Mexico (-0.7%).
“There are signs that the housing market will pick up over the short term. As the labor market has tightened, the growth rate of average weekly earnings has started to pick up, as has the growth rate of real median family income,” the report reads. In addition, the fast pace of multifamily construction will soon start to put downward pressure on rents, allowing more families to accumulate savings needed to make down payments.”
The report adds that once families’ balance sheets start to reflect the accumulated savings, the pace of single-family purchases and housing starts will start to pick up again.