Home Buyers are Springing Ahead
Home prices are on the rise in some regions, but buyers are not holding back. CoreLogic reports that home prices will continue to rise into 2018 due to inventory restrictions and rising rates. However, this price appreciation is not significant enough to stop home buyers from making a move.
CoreLogic Chief Economist Frank Nothaft said, “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% rise in home prices nationally and the CoreLogic Single-Family Rental Index was up 2.7% - both rising faster than inflation.”
Economic recovery and low mortgage rates will also contribute to the strength of the housing market. CoreLogic President and CEO Frank Martell predicts the CoreLogic Home Price Index to rise 4.8% over the next year “buoyed by lack of supply and continued high demand.”
Zillow reports that the average home value has increased 7% since February 2016, and the average inventory of available homes is down 3% since last year. With demand outpacing supply, spring is set to be a robust season for home sales.
Sources: Consumer Affairs, HousingWire