Home Prices Grow Over 7% in November

Corelogic shows home prices aren’t slowing down based on November’s market growth by 7.1% in 2016 against November of 2015. This is a continuation from the prior month which showed a 6.7% growth, which even factored distressed homes.

 This kind of growth hasn’t been seen since May of 2014. Corelogic believes home prices are rising because of the low inventory, and mostly because Donald Trump winning the election.

Per month, home prices have risen over 1.1% since October 2015 to October 2016. The historically low mortgage rates triggered demand, and the for-sale homes inventory being low led to the rise in home prices.

Prices in 27 states have seen their average home price above the peak pre-crisis levels, and don’t show any sign of slowing down.

The peak of index home prices was in 2006, and right now we are just 4% below that magic number. It’s expected to far surpass that number by the end of 2017.

This New Year we are expecting prices to rise by 5%. This is on the assumption that inventory levels rise as needed, which will put the pressure on the market to raise prices.

Corelogic has come up with these numbers based on their market analysis.

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