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American home prices rose year-over-year on a national level in August, according to CoreLogic’s home price index (HPI).
The national HPI was up 6.9 percent from where it was in August 2014. That also translates to a 1.2 percent increase over July 2015’s index.
To analyze home price trends, CoreLogic draws on a number of real estate databases and uses over 30 years of repeat-sales transactions to generate its HPI.
“Continued gains in employment, wage growth, and historically low mortgage rates are bolstering home sales and home price gains,” said Anand Nallathambi, CoreLogic’s CEO, in a statement.
Colorado saw the biggest year-over-year increase at 10.4 percent followed by Washington in a close second at 10.3 percent.
Every region of the US saw index increases. In fact, the index rose year-over-year in all states but one: Mississippi. There, it was down 0.9 percent from where it was at the same point last year.
However, growth was almost at a standstill in West Virginia and Louisiana, which had indexes of 0.1 and 0.2, respectively.
Recently, the National Association of Realtors (NAR) also found that the median US home price in August was up year-over-year. It was the 42nd month in a row of such increases.
Looking ahead, CoreLogic is predicting its HPI will climb by a more modest 4.3 percent between August this year and next.
In a statement, Frank Nothaft, CoreLogic’s chief economist, said higher mortgage rates and an increase in single-family housing starts are both expected in 2016.
“These forces should dampen demand and augment supply, leading to a moderation in home price growth,” he said.