January 3, 2019
Irvine, CA-based CoreLogic says its latest research shows home prices rose both year over year and month over month for November 2018. Home prices increased nationally by 5.1% year over year from November 2017, according to the CoreLogic Home Price Index. On a month-over-month basis, prices increased by 0.4% in November 2018.
Looking ahead, the CoreLogic HPI Forecast indicates home prices will increase by 4.8% on a year-over-year basis from November 2018 to November 2019. On a month-over-month basis, home prices are expected to decrease by 0.8% from November to December 2018.
“The rise in mortgage rates has dampened buyer demand and slowed home-price growth,” said Dr. Frank Nothaft, chief economist for CoreLogic. He notes, higher rates and home prices have reduced buyer affordability. In turn, sellers are responding by lowering asking prices, a condition reflected in the slowing growth of the CoreLogic Home Price Index.
CoreLogic’s analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, indicates 35% of metropolitan areas have an overvalued housing market as of November 2018. Additionally, 27% of the top 100 metropolitan areas were undervalued, and 38% were at value.
When looking at only the top 50 markets based on housing stock, 44% were overvalued, 18% were undervalued and 38% were at value.
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