CoreLogic: Home prices increase in Prov. metro, R.I.

HOME PRICES increased 6.9 percent nationally in August compared with August 2014, according to CoreLogic. / COURTESY CORELOGIC
HOME PRICES increased 6.9 percent nationally in August compared with August 2014, according to CoreLogic. / COURTESY CORELOGIC

PROVIDENCE – Home prices increased 4.2 percent in August in the Providence-Warwick metropolitan area compared with August 2014, according to data released Tuesday by CoreLogic.
Rhode Island posted a similar year-over-year increase at 4.6 percent.
However, both the Providence metro and Rhode Island lagged the 6.9 percent increase nationally for home prices in August compared with the previous year’s time period.
Figures for the Providence metro, Rhode Island and nation all include distressed sales, which include short sales and real estate-owned sales, CoreLogic said.
CoreLogic said that home prices are projected to increase by 4.3 percent on a year-over-year basis from August 2015 to August 2016 and remain unchanged month over month from August 2015 to September 2015.
“Economic forecasts generally project higher mortgage rates and more single-family housing starts for 2016. These forces should dampen demand and augment supply, leading to a moderation in home price growth,” Frank Nothaft, chief economist for CoreLogic, said in a statement. “Over the next 12 months through August 2016, CoreLogic projects its national HPI to rise 4.3 percent, less than the 6.9 percent gain over the 12 months through August 2015.”
Anand Nallathambi, president and CEO of CoreLogic, said, “Continued gains in employment, wage growth and historically low mortgage rates are bolstering home sales and home price gains. In addition, an increasing number of major metropolitan areas are experiencing ever-more severe shortfalls in affordable housing due to supply constraints and higher rental costs. These factors will likely support continued home price appreciation in 2016 and possibly beyond.”

No posts to display