Home prices across the country rose 6.5% year-over-year in November 2015, including distressed sales, according to CoreLogic.
The increase in U.S. home prices on a monthly basis, including distressed sales, was more muted at 0.5%, the Irvine, Calif.-based company noted in its monthly Home Price Index released Tuesday. CoreLogic predicted that the year-over-year increase in November 2016 would come in around 5.4%.
Prices are also expected to remain flat from November to December 2015.
"Heading into 2016, home price growth remains in its sweet spot as prices have increased between 5% and 6% on a year-over-year basis for 16 consecutive months," said Frank Nothaft, chief economist for CoreLogic, in the report. "Regionally we are beginning to see fissures, with slowdowns in some Texas and California markets, but the Northwest and Southeast remain on solid footing."
Factors that will sustain the home price boom include strong demand and tight supply across many markets, though decreasing affordability will begin to have a larger, adverse effect, according to Anand Nallathambi, chief executive and president for CoreLogic.
