The most recent CoreLogic Home Price Report puts home prices up 6.9 percent year-over-year nationally, and predicts that, looking forward, home prices will continue to increase by another 4.7 percent by August 2018.
Month-over-month, home prices only rose by 0.9 percent, and the forecast predicts that next month home prices will only increase at a nominal rate of 0.1 percent.
"While growth in home sales has stalled due to a lack of inventory during the last few months, the tight inventory has actually helped stabilize price growth," said Dr. Frank Nothaft, Chief Economist for CoreLogic. "Over the last three years, price growth in the CoreLogic national index has been between 5 percent and 7 percent per year, and CoreLogic expects home prices to increase about 5 percent by this time next year."
Regionally, 34 percent of the country’s 100 largest major metropolitan areas have a housing market that is overvalued, according to the report. CoreLogic determines these local markets by “categoriz[ing] home prices in individual markets as undervalued, at value or overvalued by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals such as disposable income.” Las Vegas was one of the metros with the highest year-over-year increases, at 8.4 percent, and the states of Utah and Washington once again showed double-digit growth in home price appreciations
Conversely, 27 percent of the top 100 metros were undervalued, while 39 percent were at value. When the report examined the top 50 metros, 46 percent were overvalued, yet only 16 percent were undervalued while 38 percent were at value.
To read the full report, click here.