Tag Archives: Home Prices

Home prices are up yet again, both over the month and over the year. The latest House Price Index shows a more than 6 percent uptick over 2016's prices and nearly a full percent jump since January of this year. The most annual growth was seen in the Mountain region.

First American’s Real House Price Index (RHPI) for February 2017 showed home prices remaining strong. The low inventory has meant that home prices have remained high. Additionally, the RHPI noted that rising wages have offset the impact of rising home prices and mortgage rates on affordability. Wages have grown by 2.8 percent in February.

The S&P Corelogic Case-Shiller HPI covers 20 metropolitan areas across the U.S., and is released on the last Tuesday of every month. The previous HPI, covering January 2017, showed home prices at a 31-month high. During January, home prices were up 5.9 percent year-over-year and 5.7 percent month-over-month.

Despite rising home prices, investors are still flocking to the market—and in droves. Investment home sales grew 4.5 percent last year, while the average median investment-home price jumped 8 percent. Low mortgage rates helped to keep investors in the market as prices climbed.

According to a new report, the average household spends an additional $447 per month when moving from a two-bedroom to a three-bedroom home. Move-up costs vary by home size and location but are steepest in San Jose, California, and in coastal areas. The lowest move-up costs are in Cleveland, Ohio.

Fannie Mae looked into the efficacy of early education for borrowers and buyers and found underwhelming results. While buyers, agents, and lenders like the programs in theory, the reality is that all see the programs as cumbersome. The GSE recommended retooling the programs, but not abandoning them.

CoreLogic’s February 2017 Home Price Index Report (HPI) reported gains both year-over-year and month-over-month. Home prices including distressed sales rose one percent month-over-month, and seven percent year-over-year. Some areas, particularly in the western U.S., are still harmed by low inventory. In much of California, Washington, and Oregon, home prices are considered “overvalued” as prices were over 25 percent above sustainable levels.

Many areas of the U.S. have seen home prices exceed supporting economic fundamentals, according to a report from Fitch Ratings. Areas such as Texas and Florida have seen increases in home prices that have led top overvalued homes, as inflation can't keep up.

With real house prices on the rise and inventory low, spring is poised to be a seller’s market, according to First American. Real home prices rose more than 8 percent over the year, with Jacksonville, Florida, seeing the most growth annually. According to First American Chief Economist Mark Fleming, “on a year-over-year basis, real house prices increase in all the metropolitan areas tracked . . .”

There is definitely a shortage of homes to buy this spring as the housing market heats up. The number of days on the market in most areas has been steadily decreasing and the national median DOM is approximately 43 days for most listings, as reported by Clear Capital. Buyers will need to remain vigilant this spring and constantly keep their eyes peeled for a new supply entering the market, according to Dr. Alex Villacorta, VP.