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.
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:
- Las Vegas: 9.7%
- Denver: 8.4%
- Los Angeles: 7.1%
- Boston: 7.0%
- San Francisco: 6.4%
- Miami: 5.5%
- Washington, D.C.: 4.6%
- New York City: 4.5%
- Chicago: 4.0%
- Houston: 3.3%
See the CoreLogic September report.