Home prices continued their climb in September, up 6.3 percent year-over-year and 1.1 percent month-to-month, according to CoreLogic®’s recently released Home Price Index (HPI™) and HPI Forecast. The Forecast projects a 5.2 percent price increase from September 2016 to September 2017, generating $1 trillion in homeowner equity.
“Home price growth creates wealth for owners with home equity,” says Anand Nallathambi, president and CEO of CoreLogic. “A 5 percent rise in home values over the next year would create another $1 trillion in home equity wealth for homeowners.”
“Home equity wealth has doubled during the last five years to $13 trillion, largely because of the recovery in home prices,” says Frank Nothaft, chief economist for CoreLogic. “Nationwide during the past year, the average gain in housing wealth was about $11,000 per homeowner, but with wide geographic variation.”
The HPI Forecast also expects home prices to increase by 0.3 percent from September 2016 to October 2016.
The 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.
For more information, please visit www.corelogic.com.