Confirmation.
CoreLogic, the real estate information service, has issued its latest Home Price Index and it shows what we already know – that Bay Area housing prices continued to climb in the past year, though not at the wicked rate of previous years.
The index shows that the prices of homes nationwide were up by 7.1 percent in November from a year earlier. But the market is changing. Amid rising mortgage rates, CoreLogic predicts that year-over-year appreciation between Nov. 2016 and Nov. 2017 will slow to 4.7 percent across the U.S.
The index – which looks at multiple sales of the same properties over time – offers these Bay Area snapshots:
- In the San Jose-Sunnyvale-Santa Clara metro, November prices were up 5.2 percent from the year before. The month-over-month increase was much smaller, up 0.4 percent between October and November.
- In the Oakland-Hayward-Berkeley metro, prices increased by 6.2 percent in November, when compared with November 2015. On a month-over-month basis, prices decreased by 0.9 percent from October to November 2016.
- In the San Francisco-Redwood City-South San Francisco metro, prices were up a modest 3.3 percent in November on a year-over year basis. Month-over-month, they decreased by 0.1 percent from October to November 2016.
Stepping back to look at the national picture, Frank Nothaft, CoreLogic’s chief economist, noted that last summer’s unusually low mortgage rates “sparked demand, and with for-sale inventories low, the result has been a pickup in home-price growth. With mortgage rates higher today and expected to rise even further in 2017, our national Home Price Index is expected to slow to 4.7 percent year-over-year by November 2017.”
Top: Photo of home for sale in Palo Alto. (AP/Paul Sakuma)