The Fourth of July fireworks are over, but there’s one thing that is still going skyward: U.S. home prices.
According to new data from CoreLogic
, home prices in May were up by 1.2 percent from April and up 6.6 percent from May 2016. Among the states, Washington and Utah saw double-digit year-over-year home price increases, with a 12.6 percent spike for Washington and a 10.4 percent upswing for Oregon. Three states reported year-over-year declines: a 0.3 percent dip for Alaska, a 1.2 percent drop for West Virginia and a 2.2 percent decline for Wyoming.
CoreLogic is also forecasting that home prices will increase by 5.3 percent on a year-over-year basis from May 2017 to May 2018, and will see a 0.9 percent increase from May 2017 to June 2017.
"The market remained robust with home sales and prices continuing to increase steadily in May," said Frank Nothaft, Chief Economist for CoreLogic. "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 percent 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 percent over the same time, well above the pace of overall inflation."