Average homes prices in May were up in Baton Rouge both year over year and month over month, CoreLogic Home Price Index says.
Including the sales of distressed home, prices for single-family homes were up 3.2% compared to one year ago. Month over month average home prices rose 1.1% in Baton Rouge, CoreLogic says.
The increases reflect the rise in the prices of single family homes nationally, though Baton Rouge’s price swing was less than the state and nationwide averages.
The average price of single-family homes in Louisiana was 4% higher than one year ago. Washington had the biggest year-over-year gains among states at 12.6%. Wyoming saw the largest decline, with average home prices down 2.2%.
Nationally, home prices rose 6.6% in May when compared to the same month one year ago and were up 1.2% month over month.
CoreLogic President and CEO Frank Martell in a statement says the strong run in prices has boosted home equity and, in some cases, spending.
However, affordability is expected to become a bigger issue in most U.S. housing markets, as price appreciation and rental inflation outstrip income growth.
Tight inventory also is impacting rental markets where inflation for overall single-family rents rose 3.1% on a year-over-year basis, Frank Nothaft, CoreLogic’s chief economist, adds.
CoreLogic HPI projects home prices to increase by 5.3% from this May to May 2018. The forecast is a projection of home prices using CoreLogic HPI and other economic variables.
