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TH E M R EP O RT | 47 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Up, Up, & Away Prices were up for the month, and forecasts show that trend continuing as the year goes on. T he most recent Core- Logic Home Price Index (HPI) and HPI Forecast—covering April 2017—showed home prices up both over the year and for the month. According to the HPI, prices na - tionwide, including on distressed sales, increased by 6.9 percent year-over-year. Month-over-month sales increased by 1.6 percent in April compared to March. "Mortgage rates in April dipped back to their lowest level since November of last year, spurring home-buying activity," said Dr. Frank Nothaft, Chief Economist for CoreLogic. "In some metro areas, there has been a bidding frenzy as multiple contracts are placed on a single home. This has led home-price growth to outpace rent gains. Nationally, home prices were up 6.9 percent over the last year, while rent growth for single-family rental homes recorded a 3 percent rise through April, according to the CoreLogic Single-Family Rental Index." Home prices are predicted to increase by 5.1 percent on a year-over-year basis from April 2017 to April 2018 according to the forecast. On a month-over-month basis, home prices are expected to increase by 0.7 percent from April 2017 to May 2017. "Interest rates on fixed-rate mortgages are down by one- fourth of a percentage point since mid-March, just in time to sup - port the spring home-buying sea- son," said Frank Martell, President and CEO of CoreLogic. "Some metro areas have low for-sale inventory, short time-on-market trends, and homes that sell above the list price. Geographically, gains were strongest in the West with Washington and Utah post - ing double-digit gains." Washington had the largest change in home prices, coming in at 12 percent HPI change year-over-year. At -3.9 percent, Wyoming's home prices went down in the month of April. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from forecasts at a state-level by weighting indices according to the number of owner-occupied households from each state. Minnesota, Wisconsin, Indiana: Sellers' Market Triad Prices continue to climb in the three states, despite continually scarce inventory. I t would seem there is no better time to sell than now—at least in Minnesota, Wisconsin, and Indiana, according to the RE/MAX Spring 2017 Market Trends Report. In the last year, median sales prices have increased at least 6 percent across all three states, and despite scarce inventory, they show no signs of slowing down. Though these three states do boast a sellers' market, some homeowners are hesitant to sell, worried that with rising home prices, if they give up their cur - rent house they won't be able to afford their next one. With rising lumber prices in the region, new homes are expensive to build, and existing homes for sale are sometimes being "[sold] before there is a sign in the yard and the listing hits the internet," according to the report. RE/MAX associates said today's sellers are getting multiple offers without having to negotiate. Many, they report, even have the option to add contingencies. As a result, Indiana's inventory in Q1 2017 is down 16 percent from where it was in Q1 2016, and prices have increased 5 percent to a median price of $167,427. Of the seven markets reported, Lafayette was the only area that reported an increase in new listings. Wisconsin, similarly, showed a 16 percent drop in inventory and a median sale price of $171,000, up 6.9 percent. Time on the mar- ket is down to 87 days average, compared to 103 days a year prior. Minnesota areas, particularly St. Paul/Minneapolis and the sur- rounding suburbs, saw an average of a 7 percent appreciation in the price of homes. Millennials, who are now the largest group of homebuyers na- tionwide, are one of the primary reasons for this particular market's stability, according to many RE/ MAX brokers. Unemployment is low, and more young people have acquired stable postrecession jobs. Strong economies in Wisconsin, Minnesota, and Indiana, coupled with attractive mortgage rates and a lower median house cost com- pared to the rest of the country, will continue to make this region highly desirable. Home prices are predicted to increase by 5.1 percent on a year- over-year basis from April 2017 to April 2018. 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