Single-family home prices in Baton Rouge area up 1.7% in June

    The average price of single-family homes in Baton Rouge, including the sale of distressed houses, rose 1.7% during the month of June compared the year prior, according to the CoreLogic Home Price Index released today.
    Home prices increased nationally by 6.8% year-over-year from June 2017 to June 2018. On a month-over-month basis, prices increased by 0.7% in June 2018 compared with May 2018, according to the financial services company.
    Looking ahead, the CoreLogic forecast indicates that the national price index is projected to continue to increase 5.1% on a year-over-year basis through June 2019, possibly edging out younger adults who feel home ownership is not affordable.
    “The rise in home prices and interest rates over the past year have eroded affordability and are beginning to slow existing home sales in some markets,” said Frank Nothaft, chief economist for CoreLogic in the index report. “Further increases in home prices and mortgage rates over the next year will likely dampen sales and home-price growth.”

    Across the U.S., the desire to own a home is significantly higher among those in younger age cohorts, CoreLogic reports. Younger millennial renters, under the age of 29, are significantly more likely to want to buy a home in the next 12 months than older millennial or Generation X renters. However, affordability for this group is a significant issue. Sixty-three percent of younger millennials who are not interested in home ownership identified the inability to afford a home or down payment as the primary reason.
    This is compared with 50% of older millennial renters and 52% of Generation X renters. For their part, boomer generation renters say their lack of interest in home ownership is driven by a lack of need at this stage in their lives.  Read the full report.

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