CoreLogic Home Price Index May Prices Up 7 Percent

Dated: 07/05/2018

Views: 244

Analysts are anticipating home prices to tick up, but decelerated to a lesser pace, according to CoreLogic’s latest Home Price Index (HPI®) report.

CoreLogic data found that May prices rose1.1 percent month-over-month and 7.1 percent year-over-year. According to a forecast in the report, prices will have risen 0.3 percent in June, and increase 5.1 percent through May 2019.

Additionally, 40 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; 34 percent are at value, and 26 percent are undervalued (“at least 10 percent below the long-term, sustainable” trend).

According to Dr. Frank Nothaft, chief economist for CoreLogic, the dynamic is not in favor of first-time homebuyers, and, more homeowners are staying put, intensifying the inventory shortage. “The lean supply of homes for sale is leading to higher sales prices and fewer days on market, and the supply shortage is more acute for entry-level homes,” says Dr. Nothaft. “During the first quarter, we found that about 50 percent of all existing homeowners had a mortgage rate of 3.75 percent or less. May’s mortgage rates averaged a seven-year high of 4.6 percent, with an increasing number of homeowners keeping the low-rate loans they currently have, rather than sell and buy another home that would carry a higher interest rate.”

In an illustration of the imbalance in the market, 15 percent of homeowners and 41 percent of renters are aiming to buy a home in the next year, but only 11 percent of homeowners are planning to sell, according to a separate study by CoreLogic and RTi Research. “The CoreLogic consumer research demonstrates that, despite high home prices, renters want to get out of their rental property and purchase a home,” says Frank Martell, CEO/president of CoreLogic. “Even in the most expensive markets, we found four times as many renters looking to buy than homeowners willing to sell. Until more supply becomes available, we will continue to see soaring prices in cities such as Denver, San Francisco and Seattle.”

Source: CoreLogic

For more information, please visitwww.corelogic.com.

Blog author image

David Sarnowski

David is a seasoned real estate professional, specializing in residential sales, rentals and investment properties. David is an 18 year resident of the New Jersey Gold Coast, with the local knowledge ....

Latest Blog Posts

What The Experts Are Saying About The Economic Slow Down

More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. According to the National Bureau of Economic Research: “A

Read More

How Coronavirus Affects The 2020 Real Estate Market So Far

What Is Coronavirus?COVID-19, better known as coronavirus, is a viral infection with flu-like symptoms. The virus is primarily transmitted via respiratory droplets, such as when an infected

Read More

Now Is The Time If You Are Considering Selling

The housing market has started off much stronger this year than it did last year. Lower mortgage interest rates have been a driving factor in that change. The average 30-year rate in 2019,

Read More

How To Best Navigate New Color Trends

Bold, saturated colors are back after years of calm beiges, soothing grays, and varied whites dominating the interior design scene. What’s a homeowner to do?For years, homeowners and their real

Read More