CoreLogic, which describes itself as, “the leading global property information, analytics and data-enabled solutions provider”, has released its most recent report on pricing and the housing market. Titled the, “U.S. Home Price Insights Report” this report gives accurate historical information mixed with data based forecasting to show where home prices have been and points toward where prices are headed to.
In the over-all scheme of things, CoreLogic’s finding show that the US has seen 51 consecutive months of year over year increases in home prices. The only negative to this otherwise fantastic report is that the increases are no longer in double digits.
Home prices still remain 7.9 percent below their peak levels from eleven years ago.
Has the growth in the US housing market slowed down? Evidently not. CoreLogic predicts that, “Including distressed sales, national single-family home prices are forecasted to reach a new peak level by September 2017”.
This growth in home values has had a huge positive effect on homeowners, especially those that have been “underwater” with their mortgages.
“More than 1 million homeowners have escaped the negative equity trap over the past year. We expect this positive trend to continue over the balance of 2016 and into next year as home prices continue to rise,” said Anand Nallathambi, president and CEO of CoreLogic.
Negative equity values dropped $11.8 billion from the 4th Qtr. Of 2015 to the 1rst Qtr. Of 2016.
The methodology employed by Corelogic to determine their home price insight report is to, “Utilize the repeat-sale method to track increases and decreases in sales prices for the same home over time. By analyzing data on homes with two or more recorded sales transactions, these indexes provide accurate ‘constant quality’ views of pricing trends”.
All of the above reflects the U.S. real estate market as a whole. How are things playing out here in North Carolina? Fortunately, we here in the Tar Heel state are experiencing the same positive effects of an improving housing market and with rising home prices.
Month over month home prices here in North Carolina have increased by 1.2 percent while year over year increases are at 4.1 percent. Looking ahead and comparing right now with 2017, CoreLogic forecasts that the year over year increase will also be at 4.1 percent. So in summary, things are looking very good for all of 2016 and into 2017.
Just as a reminder, all real estate is local and each market has its own influences that can cause inventory and pricing to go up or down.
The two biggest obstacles the Crystal Coast real estate market has had to face since the real estate “bust” has been a glut of inventory and not re-adjusting pricing to match current conditions. It has been a long, slow, decade long process but the area has reduced most of the heavy burden of an over-supply of inventory while home affordability and access to mortgage lending has improved tremendously. Now is a good time for both the home buyer and seller.
For more information about buying or selling a home, condo, waterfront property or any type of real estate along the Crystal Coast or Neuse River areas then contact Margaret Hitchcock with Hitchcock Realty. Margaret is a Realtor with many years of successful real estate experience. Call Margaret today at (252) 269-2893.