CoreLogic: July Prices up 6.2 Percent
Home prices are still on a tear, but growing less significantly than in 2017, according to CoreLogic's latest Home Price Index (HPI™) report. In July—around the height of one of history's hottest housing markets—prices rose 6.2 percent year-over-year, the report shows.
"With increased interest rates and home prices, the CoreLogic Home Price Index is rising at a slower rate than it was a year ago," says 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."
Fifty percent of the 100 largest markets are overvalued, a condition CoreLogic defines as when "home prices are at least 10 percent higher than the long-term, sustainable" trend; 40 percent are at value, and 20 percent are undervalued ("at least 10 percent below the long-term, sustainable" trend).
According to a forecast in the report, prices are projected to rise 5.1 percent through July 2019.
"Many consumers see their homes as good investments," says Frank Martell, president and CEO of CoreLogic. "Our consumer research indicates homeowners, especially those in high price growth markets, are confident that by waiting to sell, they will receive a greater return on investment than they would today. In other words, sellers are largely staying put.
"With fewer homes on the market, price pressure will continue to rise," Martell says.