Home Prices Rose 6.7% YOY in June, Says CoreLogic

Irvine, CA, August 1, 2017-Home prices nationally increased year over year by 6.7% from June 2016 to June 2017, and on a month-over-month basis, home prices increased by 1.1% in June 2017 compared with May 2017, according to the CoreLogic Home Price Index (HPI).

Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 5.2% on a year-over-year basis from June 2017 to June 2018, and on a month-over-month basis home prices are expected to increase by 0.6% from June 2017 to July 2017.

“The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory,” said Dr. Frank Nothaft, chief economist for CoreLogic. “As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years.”

Of the nation’s ten largest metropolitan areas measured by population, four were overvalued in June according to CoreLogic Market Conditions Indicators (MCI) data. These four metros include Denver-Aurora-Lakewood, Colorado; Houston-The Woodlands-Sugar Land, Texas; Miami-Miami Beach-Kendall, Florida’ and Washington-Arlington-Alexandria, DC-Virginia-Maryland-West Virginia.

“Home prices are marching ever higher, up almost 50% since the trough in March 2011. With no end to the escalation in sight, affordability is rapidly deteriorating nationally and especially in some key markets such as Denver, Houston, Miami and Washington,” said Frank Martell, president and CEO of CoreLogic. “While low mortgage rates are keeping the market affordable from a monthly payment perspective, affordability will likely become a much bigger challenge in the years ahead until the industry resolves the housing supply challenge.”