Home Prices Rise 3.6 Percent
In April, home prices rose 3.6 percent year-over-year, with a 1 percent change from March, according to CoreLogic's latest Home Price Index (HPI™) report. The average home price is projected to rise 4.7 percent this year, the report shows.
Thirty-seven 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, according to the HPI report; 37 percent are at-value; and 26 percent are undervalued ("at least 10 percent below the long-term, sustainable" trend). Across the 50 largest markets, 42 percent are overvalued, 42 percent are at-value and 16 percent are undervalued.
"The pickup in sales between March and April has helped to counter the recent slowing in annual home price growth," says Dr. Frank Nothaft, chief economist at CoreLogic. "Mortgage rates are 0.6 percentage points below what they were one year ago and incomes are up, which has improved affordability for buyers; however, price growth has remained the highest for lower-priced homes, constraining housing choices for first-time buyers."
"According to our consumer research, buyers feel that high prices are forcing them to spend more than they'd expect on a home," says Frank Martell, president and CEO of CoreLogic. "As many as one-third of buyers admit they put down a higher down payment as well."