Home prices saw an increase of 1 percent from January to February, according to CoreLogic’s U.S. Home Price Insights Report for February.
Year to year, home prices rose 7 percent, including distressed sales, from February 2016 to February 2017. Excluding distressed sales, home prices increased 5.7 percent. Year-to-year, this is the 61st consecutive month that home prices have increased.
However, single-family home prices across the country are still 3.8 percent less than the peak levels hit in April 2006. Prices are predicted to hit a new high in October 2017.
The report predicts home prices will increase .4 percent from February to March of this year, and go up 4.7 percent by next February.
“Home prices and rents have risen the most in local markets with high demand and limited supply, such as Seattle, Portland and Denver,” said CoreLogic Chief Economist Dr. Frank Nothaft. “The rise in housing costs has been largest for lower-tier-priced homes.”
Across the country, 11 states and Washington, D.C. hit new highs this month, while in Connecticut and West Virginia, homes showed negative price appreciation.
In Pennsylvania, homes decreased slightly by .2. percent from January to February, but increased 2.9 percent year-to-year. Home prices are expected to rise .3 percent in March, and 3.8 percent year-to-year in the commonwealth.
“Home prices continue to grow at a torrid pace so far in 2017 and these gains are likely to continue well into the future,” said Frank Martell, president and CEO of CoreLogic. “Home prices are at peak levels in many major markets and the appreciation is being driven by a number of dynamics—high demand, stronger employment, lean supplies and affordability—that will continue to play out in the coming years. The CoreLogic Home Price Index is projecting an additional 5 percent rise in home prices nationally over the next 12 months.”