Home prices were up again in May on both a monthly and year-over-year basis.
Property information-provider CoreLogic reports that on a annual basis, its Home price Index (HPI) in May rose 6.6% from the same month a year ago, and was up 1.2% on a month-over-month basis.
“The market remained robust with home sales and prices continuing to increase steadily in May,” said Dr. Frank Nothaft, chief economist for CoreLogic. “While the market is consistently generating home price growth, sales activity is being hindered by a lack of inventory across many markets.”
Nothaft also said the tight inventory is also have an effect on the rental market where overall single-family rent inflation was 3.1% on a year-over-year basis in May.
“Rents in the affordable single-family rental segment (defined as properties with rents less than 75% of the regional median rent) increased 4.7% over the same time,” he noted, “well above the pace of overall inflation.”
The CoreLogic HPI Forecast suggests that home prices will advance 5.3% from May of this year to May 2018, and -- on a month-over-month basis -- 0.9% from May to June.
“With price appreciation and rental inflation outstripping income growth,” said CoreLogic CEO Frank Martell, “affordability is destined to become a bigger issue in most markets.”