Home prices see increase in September

Home prices are expected to hit a new peak in October 2017, if they continue at this rate, according to CoreLogic’s U.S. Home Price Insights Report for September 2016.

The price of homes, including distressed sales, increased by 1.1 percent from August to September. If you exclude distressed sales, home prices saw an increase of 1 percent.

On a year-to-year basis, home prices, including distressed sales, saw an increase of 6.3 percent from September 2015. Excluding distressed sales, home prices increased by 5.8 percent compared to the same time period last year.

It is predicted that October 2016 will see a .3 percent raise, compared to September, CoreLogic predicted. By September 2017, home prices will see a 5.2 percent increase, including distressed sales, the report predicted.

The U.S. has seen 56 consecutive months of year-to-year increases in home prices, but CoreLogic pointed out that the percentage of increases has slowed.

“Home equity wealth has doubled during the last five years to $13 trillion, largely because of the recovery in home prices. Nationwide, during the past year, the average gain in housing wealth was about $11,000 per homeowner, but with wide geographic variation,” Dr. Frank Nothaft, chief economist for CoreLogic said.

In Pennsylvania, the month-to-month percent change was -.1 percent, with a 2.5 percent year-to-year change. The predicted month-to-month change for September to October is .2 percent. It is expected to see an increase of 4.4 percent by September 2017.

In 2006, home prices in the top 100 markets were more than 25 percent higher than the long-run sustainable levels, the report said. In September 2016, 112 markets are overvalued, with the majority in Texas.