PROVIDENCE – The Home Price Index in the Providence metropolitan area increased 6.5 percent year over year in August, according to CoreLogic Inc.
The HPI, which includes the sale of distressed properties, increased in the metro area by 1 percent from July to August.
The HPI for single-family homes in Rhode Island rose 6.2 percent year over year in August. The only other states in New England to surpass Rhode Island’s HPI growth rate were Maine, where the HPI grew 8.2 percent year over year, and Massachusetts, where the HPI increased 6.6 percent year over year.
Going forward, CoreLogic expects the HPI in Rhode Island will grow 4.2 percent from August 2017 to August 2018. CoreLogic also determined that the HPI in Rhode Island is normally valued as opposed to undervalued or overvalued.
“While growth in home sales has stalled due to a lack of inventory during the last few months, the tight inventory has actually helped stabilize price growth,” said Frank Nothaft, chief economist for CoreLogic. “Over the last three years, price growth in the CoreLogic national index has been between 5 percent and 7 percent per year, and CoreLogic expects home prices to increase about 5 percent by this time next year.”
Nationally, HPI increased 6.9 percent year over year in August. Washington saw the fastest HPI growth rate of any state in the nation. West Virginia was the only state in the nation in which HPI fell year over year.
Chris Bergenheim is the PBN web editor.
