CoreLogic September Home Price Index Soars 7%

U.S. home prices rose 7% in September compared with the same month a year ago, according to CoreLogic. The research firm had previously forecast a rise of 4.7%, more in line with the index jumps in for the first three months of the year. The data include sales of distressed properties.

Month over month, prices rose 0.9% in September, including distressed home sales. CoreLogic expects October housing prices to rise by 4.7% year over year and to dip by 0.1% month over month.

CEO Frank Martell noted:

A strengthening economy, healthy consumer balance sheets and low mortgage interest rates are supporting the continued strong demand for residential real estate. While demand and home price growth is in a sweet spot, a third of metropolitan markets are overvalued and this will become more of an issue if prices continue to rise next year as we anticipate.

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Chief economist Frank Nothaft added:

Heading into the fall, home price growth continues to grow at a brisk pace. This appreciation reflects the low for-sale inventory that is holding back sales and pushing up prices. The CoreLogic Single-Family Rent Index rose about 3 percent over the last year, less than half the rise in the national Home Price Index.

Including distressed sales, home prices rose the most in Utah (10.5%) and Washington (12.5%).

The 10 U.S. metropolitan areas posting the largest increases were:

1. Las Vegas: 9.7%
2. Denver: 8.4%
3. Los Angeles: 7.1%
4. Boston: 7.0%
5. San Francisco: 6.4%
6. Miami: 5.5%
7. Washington, D.C.: 4.6%
8. New York City: 4.5%
9. Chicago: 4.0%
10. Houston: 3.3%

See the CoreLogic September report.

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