Home Prices were on the way up for May 2017 and had risen dramatically both year over year and month over month. A new report released today by CoreLogic had shown that prices have increased year over year by 6.6% from May 2016 to May 2017, and on a month-over-month basis, home prices increased by 1.2% in May 2017 compared with April 2017.
CoreLogic forecasts that home prices will go up by 5.3% on a year-over-year basis from May 2017 to May 2018, and on a month-over-month basis home prices are expected to increase by 0.9% from May 2017 to June 2017.
The chief economist for CoreLogic, Dr. Frank Nothaft said;
“The market remained robust with home sales and prices continuing to increase steadily in May. While the market is consistently generating home price growth, sales activity is being hindered by a lack of inventory across many markets. This tight inventory is also impacting the rental market where overall single-family rent inflation was 3.1% on a year-over-year basis in May of this year compared with May of last year. Rents in the affordable single-family rental segment (defined as properties with rents less than 75 percent of the regional median rent) increased 4.7% over the same time, well above the pace of overall inflation.”
Frank Martell, president and CEO of CoreLogic had said;
“For current homeowners, the strong run-up in prices has boosted home equity and, in some cases, spending. For renters and potential first-time homebuyers, it is not such a pretty picture. With price appreciation and rental inflation outstripping income growth, affordability is destined to become a bigger issue in most markets.”