Home prices in both October and November showed annual gains in 2017, according to two leading indicators, the S&P CoreLogic Case-Shiller Indices and the CoreLogic Home Price Index.
The S&P CoreLogic Case-Shiller Indices reported home prices in October increased 6.2 percent annually, up from 6.1 percent in September, according to the S&P CoreLogic Case-Shiller Indices.
The 10-City Composite showed an annual increase of 6 percent, up from 5.7 percent in September. The 20-City Composite grew 6.4 percent annually, up from 6.2 percent in September.
The highest year-over-year gains were reported in Seattle, 12.7 percent; Las Vegas, 10.2 percent; and San Diego, 8.1 percent.
“Underlying the rising prices for both new and existing homes are low interest rates, low unemployment and continuing economic growth,” said David Blitzer, managing director and chairman of the Index Committee, in a statement. “Some of these favorable factors may shift in 2018. Since home prices are rising faster than wages, salaries, and inflation, some areas could see potential home buyers compelled to look at renting.”
In November, the CoreLogic Home Price Index, which provides an early indication of home price trends, showed that home prices across the country increased 7 percent year-over-year and 1 percent month-over-month.
The states with the highest year-over-year home price increases were Washington, up 12.2 percent; Nevada, 10.8 percent; Utah, 10.5 percent; and Idaho, 10.4 percent. No states experienced home price declines.
CoreLogic forecasts a 0.4 percent month-over-month decrease come December but a 4.2 percent year-over-year home price gain in November 2018.
“Rising home prices are good news for home sellers, but add to the challenges that home buyers face,” said CoreLogic Chief Economist Frank Nothaft in a statement. “Growing numbers of first-time buyers find limited for-sale inventory for lower-priced homes, leading to both higher rates of price growth for ‘starter’ homes and further erosion of affordability.”
