Prices increases escalated again on a year-over-year basis in August according to information released on Tuesday by CoreLogic. The company's Home Price Index (HPI) was up by 6.2 percent compared to August 2015. The July annual increase was 6.0 percent and June-to-June appreciation was 5.7 percent. Price gains from July to August nationwide were estimated at 1.1 percent for the third consecutive month.
Oregon, Washington, and Colorado continue to outpace the rest of the country with annual price increases of 10.3, 10.2, and 9.1 percent respectively. Other states with outsized gains were Utah at 7.7 percent and Florida and West Virginia each with 7.6 percent appreciation. The only state in which prices are declining is Connecticut which posted a 1.1 percent annual loss.
"Housing values continue to rise briskly on stronger fundamental and investor-fueled demand, as well as lack of adequate supply," said Anand Nallathambi, president and CEO of CoreLogic. "This continued price appreciation is contributing to a growing affordability crisis in many markets around the country."
CoreLogic is forecasting an increase of 5.3 percent over the 12-month period that will end in August 2017. Its forward looking HPI anticipates an increase of 0.4 percent from August to September. Actual month-over-month numbers have been twice or more what CoreLogic has forecast almost every month this year.
"Home prices are now just 6 percent below the nominal peak reached in April 2006," said Dr. Frank Nothaft, chief economist for CoreLogic. "With prices forecasted to increase by 5 percent over the next year, prices will be back to their peak level in 2017."