Home prices up 6.7 percent in October nationally

Central Valley Business Times

December 6, 2016 5:56am 

•  Six Central Valley markets top national average

•  “Prices are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates”

Home prices nationwide, including distressed sales, increased year over year by 6.7 percent in October compared with October 2015 and increased month over month by 1.1 percent in October compared with September, according to a report Tuesday from financial information company CoreLogic Inc. (NYSE: CLGX), of Irvine.

The CoreLogic “HPI Forecast” indicates that home prices will increase by 4.6 percent on a year-over-year basis from October 2016 to October 2017, and on a month-over-month basis home prices are expected to increase by 0.2 percent from October 2016 to November 2016.

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.

"While national home prices increased 6.7 percent, only nine states had home price growth at the same rate of growth or higher than the national average because the largest states, such as Texas, Florida and California, are experiencing high rates of home price appreciation," says Frank Nothaft, chief economist for CoreLogic.

"Home prices are continuing to soar across much of the U.S. led by major metro areas such as Boston, Los Angeles, Miami and Denver. Prices are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates," says Anand Nallathambi, president and CEO of CoreLogic. "Looking forward to next year, nationwide home prices are expected to climb another 5 percent in many parts of the country to levels approaching the pre-recession peak."

Home prices in the Central Valley increased in all markets measured by CoreLogic but with a market difference between the largest increase and the smallest.

Here are CoreLogic’s summaries:

Home Prices in Madera Increase

In Madera, home prices, including distressed sales, increased by 11.7 percent in October 2016 compared with October 2015. On a month-over-month basis, home prices, including distressed sales, increased by 2.6 percent in October 2016 compared with September 2016.

Home Prices in Modesto Increase

In Modesto, home prices, including distressed sales, increased by 11.2 percent in October 2016 compared with October 2015. On a month-over-month basis, home prices, including distressed sales, increased by 0.9 percent in October 2016 compared with September 2016.

Home Prices in Merced Increase

In Merced, home prices, including distressed sales, increased by 9.6 percent in October 2016 compared with October 2015. On a month-over-month basis, home prices, including distressed sales, decreased by 0.2 percent in October 2016 compared with September 2016.

Home Prices in Stockton-Lodi Increase

In Stockton-Lodi, home prices, including distressed sales, increased by 7.6 percent in October 2016 compared with October 2015. On a month-over-month basis, home prices, including distressed sales, stayed the same in October 2016 compared with September 2016.

Home Prices in Visalia-Porterville Increase

In Visalia-Porterville, home prices, including distressed sales, increased by 7.3 percent in October 2016 compared with October 2015. On a month-over-month basis, home prices, including distressed sales, increased by 1.3 percent in October 2016 compared with September 2016.

Home Prices in Fresno Increase

In Fresno, home prices, including distressed sales, increased by 4.9 percent in October 2016 compared with October 2015. On a month-over-month basis, home prices, including distressed sales, stayed the same in October 2016 compared with September 2016.

Home Prices in Bakersfield Increase

In Bakersfield, home prices, including distressed sales, increased by 3.2 percent in October 2016 compared with October 2015. On a month-over-month basis, home prices, including distressed sales, increased by 0.8 percent in October 2016 compared with September 2016.

http://www.centralvalleybusinesstimes.com/stories/001/?ID=31705