It’s March and home prices are rising annually, outpacing inflation. Real estate data group, CoreLogic released their January 2017 Home Price Index (HPI), showing prices increased 0.7 percent month-over-month and 6.9 percent year-over-year.
As CoreLogic chief economist, Dr. Frank Nothaft states, “A combination of factors is driving momentum ahead of the curve. With lean for-sale inventories and low rental vacancy rates, many markets have seen housing prices outpace inflation. Over the 12 months through January of this year, the CoreLogic Home Price Index recorded a 6.9 percent rise in home prices nationally and the CoreLogic Single-Family Rental Index was up 2.7 percent—both rising faster than inflation.”
With so little inventory available for sale, CoreLogic’s HPI Forecast predicts a 0.1 percent increase in home prices month-over-month from January to February, and a year-over-year increase of 4.8 percent from January 2017 to January 2018.
According to CoreLogic president and CEO, Frank Martell, “Home prices continue to climb across the nation, and the spring home-buying season is shaping up to be one of the strongest in recent memory. A potent mix of progressive economic recovery, demographics, tight housing stocks and continued low mortgage rates are expected to support this robust market outlook for the foreseeable future. We expect the CoreLogic [HPI] to rise 4.8 percent nationally over the next 12 months, buoyed by lack of supply and continued high demand”
We are seeing an early start to the 2017 spring home-buying season, indicating record-high home prices with fewer days on market for February. This is especially true for Denver where you’ll see in the chart that showings for February are up over this time last year. Even though homes are selling faster and for more money, it’s still a good time to move. Steady growth and rising interest rates mean that waiting a year or more will lessen your buying power, while purchasing now gives the benefits offered by low rates and building equity. If you or someone you know wants to know how this market can work for you in a first-time or move-up purchase, I’d be glad to have a conversation.
Full disclosure: Tracy Shaffer is a licensed Realtor with Your Castle Real Estate, selling residential properties in the Denver Metro area.