Home prices maintaining steady gains

Home prices increased at a steady pace in May over the past year, a new report showed on Tuesday.

CoreLogic, a leading global property information firm, said home prices nationwide, including distressed sales, increased 5.9 percent in May compared with a year ago, according to the latest price index. 

{mosads}Prices increased at a 1.3 percent pace in May from April.

“Housing remained an oasis of stability in May with home prices rising year over year between 5 percent and 6 percent for 22 consecutive months,” said Frank Nothaft, chief economist for CoreLogic.

“The consistently solid growth in home prices has been driven by the highest resale activity in nine years and a still-tight housing inventory,” Nothaft said.

Jobs growth and low mortgage rates — below 4 percent for a 30-year-fixed loan — are bolstering the housing sector even as inventory remains constrained. 

CoreLogic’s forecast shows that home prices will increase by 5.3 percent on a year-over-year basis from May to May 2017.

Prices are expected to increase at a slightly slower 0.8 percent pace in June from May.

The Pacific Northwest is the hottest area for home-price growth, with Oregon at 11 percent and Washington at 10.1 percent annual growth leading the way.

“The recent turbulence in financial markets should lead to modestly lower mortgage rates, which will provide even more support to the steadily improving real estate recovery,” said Anand Nallathambi, president and CEO of CoreLogic.