Home prices hit high, projected to skyrocket 2019

Real Estate

The price of an average home grew 7.1% in May and could rise another 5.1% by 2019, according to CoreLogic analysis. House prices are about to skyrocket — again.

Following an all-time high over the winter of $285,700, housing prices shot up in May by 7.1 percent year-over-year, the largest spike in four years, according to the CoreLogic Home Price Index and Forecast, released on Wednesday.

The eye-opening increase in May reversed some moderate annual reductions brought on by rising mortgage rates, but prices are expected to continue their rise despite the hikes — up another 5.1 percent by 2019, according to CoreLogic.

“The lean supply of homes for sale is leading to higher sales prices and fewer days on market, and the supply shortage is more acute for entry-level homes,” said Dr. Frank Nothaft, chief economist for CoreLogic, in a statement. “During the first quarter, we found that about 50 percent of all existing homeowners had a mortgage rate of 3.75 percent or less.”

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