Home prices surge in November

The Scotsman Guide - Victor Whitman - 03 January 2017

U.S. home prices were moving up solidly to close out the year, CoreLogic reported.

The company’s national home price index increased year over year by 7.1 percent in November and was up 1.1 percent compared to the October reading. The index includes distressed properties.

Over the year, prices rose the most in Oregon (up 10.3 percent), Washington (10 percent) and Colorado (8.8 percent), the company reported. Home prices have exceeded their pre-crisis peak levels in 27 states, CoreLogic said.

“Last summer’s very low mortgage rates sparked demand, and with for-sale inventories low, the result has been a pickup in home-price growth,” CoreLogic's Chief Economist Frank Nothaft said. 

Nothaft said he expects the annual gain in prices to slow to 4.7 percent in 2017 as mortgage rates rise, and predicted that the price growth would be essentially flat in December over the November level.