Rising demand and limited housing inventory will continue to push up home prices across the U.S. in 2018, according to a report Tuesday by CoreLogic.
The CoreLogic Home Price Index is projected to rise 4.3% by the year’s end, following a 6.6% year-over-year increase in 2017. In fact, national home prices rose steadily at more than 6% year-over-year during the last five months of 2017, according to the California-based global property information provider.
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"Home prices continue to rise as a result of aggressive monetary policy, the economic and jobs recovery and a lack of housing stock," Frank Martell, president and CEO of CoreLogic, said in the report.
Mortgage rates are still at a historic low, while the unemployment rate dropped to 4.1% at the end of 2017, the lowest level in 17 years, CoreLogic noted.
"Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices," said Frank Nothaft, chief economist at CoreLogic.
In 2017, five Western states—California, Idaho, Nevada, Utah and Washington—registered the largest price gains. Four of the five states, excluding California, saw double-digit price growth.
| U.S. States with Highest Home Price Gains in 2017 | |
| Washington | 12% |
| Nevada | 11% |
| Idaho | 10.70% |
| Utah | 10.70% |
| California | 8.20% |
| National | 6.60% |
| Source: ÇoreLogic | |
At a metro level, Las Vegas, San Francisco, Denver, Los Angeles and Boston and their surrounding areas had the largest price gains in 2017.
| Metropolitans With Highest Home Prices Gains in 2017 | |
| Las Vegas-Henderson-Paradise | 11.20% |
| San Francisco-Redwood City-South San Francisco | 10.10% |
| Denver-Aurora-Lakewood | 8.10% |
| Los Angeles-Long Beach-Glendale | 7.80% |
| Boston | 5.90% |
| Source: CoreLogic | |