CoreLogic released their Home Price Index report for August, showing that home prices rose by 1.3% from July and 18.1% year over year, which is a notch higher than the 18% annual gain reported in July.
Within the report, the hottest markets were Phoenix (+31%), San Diego (+23%) and Las Vegas (+22%).
CoreLogic forecasts that home prices will rise 0.3% in September and 2.2% in the year going forward (which is below their previous annual forecast of 2.7%). They remain conservative in their forecasting and continue to miss on the low side. For example, CoreLogic had forecasted prices for August would rise by 0.7% and prices ended up increasing 1.3%.
However, Frank Martell, the President and CEO of CoreLogic, did state that he thinks the trend of strong price gains will continue indefinitely with large amounts of capital chasing too few assets.
While monthly appreciation gains are still expected to occur, they could start to slow and this would make the year over year figures start to even out or come down a bit, like the annual figure reported for August. Note this does not mean home prices are expected to decline because there is still too big of a crop of homebuyers for too few homes. But the pace of gains could slow.
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