CoreLogic’s Home Price Index (HPI) continue to show that owner-occupied homes across the nation are increasing in value. In September, values increased 0.4%, which is an increase of 3.5% since September of last year. The HPI also gives us a forecast of appreciation showing that homes will appreciate by 0.3% over the next month and by a whopping 5.6% over the next year!
Chief Economist for CoreLogic, Frank Nothaft said, “Mortgage rates were a full percentage point lower this September compared to a year ago, boosting affordability for first–time buyers and supporting a rise in homeownership. In addition to lower interest rates, personal income grew faster than home prices during the past year. This provided an additional lift for first-time buyer affordability and helped to boost the homeownership rate to the highest level in more than five years.”
CoreLogic also notes that all fifty states are currently seeing positive trends with home pricing. Addiitonally, there is a lot of demand coming from millennial buyers, who are actually spending more on homes than they anticipated, while also on average putting less than 20% down.
Low interest rates and continued buyer demand are helping homes appreciate. The housing market is very healthy and will continue to be healthy should the current market conditions continue.
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Sources:
www.corelogic.com
By: Jon Iacono