July Home Prices Rose 6.2% YOY, Says CoreLogic
Irvine, CA, September 4, 2018-Home prices increased nationally by 6.2% year over year from July 2017 to July 2018, according to the CoreLogic Home Price Index (HPI) and HPI Forecast for July 2018.
On a month-over-month basis, prices increased by 0.3% in July 2018 compared with June 2018.
Looking ahead, the CoreLogic HPI Forecast indicates that the national home-price index is projected to continue to increase by 5.1% on a year-over-year basis from July 2018 to July 2019. On a month-over-month basis, home prices are expected to decrease by 0.2% from July to August 2018.
“With increased interest rates and home prices, the CoreLogic Home Price Index is rising at a slower rate than it was earlier this year,” said Dr. Frank Nothaft, chief economist for CoreLogic. “While markets in the western part of the country continue to experience rapid home-price growth, many of those metros are overvalued, and will likely experience a slowdown soon.”
According to the CoreLogic Market Condition Indicators (MCI), an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, 40% of metropolitan areas have an overvalued housing market as of July 2018. Additionally, as of July 2018, 20% of the top 100 metropolitan areas were undervalued, and 40% were at value. When looking at only the top 50 markets based on housing stock, 50% were overvalued, 12% were undervalued and 38% were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10% higher than the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10% below the sustainable level.