According to its September Home Price Index (HPI) report released by CoreLogic, home prices registered a 6.3% increase versus September of last year. After two months of 6.9% annual home price increases, the September HPI shows a more significant deceleration in appreciation on a month-over-month basis. The September number was exactly half that posted in August, dropping from 1.2% to 0.6%.
CoreLogic sees a further slowdown in prices in what has been a steady increase in home values since early 2012. The company’s HIP forecast projects a 4.7% appreciation from September 2015 to September 2016.
“The continued growth in home prices is welcome news for many homeowners but more markets are becoming overvalued. In the near term, this trend is likely to continue and pose risks to the housing economy,” stated Anand Nallathambi, CEO of CoreLogic. “More has to be done to expand inventories if we are going to address the emerging affordability crisis, especially in hot markets like California and Colorado.”