Home prices in the Twin Cities metro at the end of last year rose slightly slower than the national average, according to the latest CoreLogic US Home Price Report. During November, metro-area prices increased 4.3 percent from the previous year compared with 6.3 percent nationally. Across the country prices are expected to increase 5.4 percent by November 2016. Those local and national figures are consistent with other reports, which shows price gains moderating over the coming year as higher home prices, rising mortgage rates and inventory constraints put more presure on the market. The data is for single-family houses and includes distressed sales.
Here's an analysis of the situation from Frank Nothaft, chief economist for CoreLogic: "Heading into 2016, home price growth remains in its sweet spot as prices have increased between 5 and 6 percent on a year-over-year basis for 16 consecutive months," he said. "Regionally we are beginning to see fissures, with slowdowns in some Texas and California markets, but the northwest and southeast remain on solid footing."
And from Anand Nallathambi, president and CEO of CoreLogic: "Many factors, including strong demand and tight supply in many markets, are contributing to the long-sustained boom in prices and home equity which is a very good thing for those owning homes," said . "On the flip side, prices have outstripped incomes for several years in a number of regions so, as we enter 2016, affordability is becoming more of a constraint on sales in some markets."
