Additional Supply Needed to Alleviate Rising Home Prices

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According to the latest CoreLogic Home Price Index (HPI) Report, home prices (including distressed sales) were up 6.9% year-over-year in April, 2018.  In addition, prices were also up 1.2% from March.  The CoreLogic HPI forecasts that home prices will increase by 5.3% (year-over-year) from April 2018 to April 2019, and 0.2 % on a month-over-month basis.  The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“The best antidote for rising home prices is additional supply.  New construction has failed to keep up with and meet new housing growth or replace existing inventory.  More construction of for-sale and rental housing will alleviate housing cost pressures.”  Said Frank Nothaft, CoreLogic’s Chief Economist.

Click here to read the full report on Corelogic.com.

 

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Director of Education & Outreach, National Real Estate Investors Association

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