CoreLogic: Home Prices Up 7%; 34% of Markets ‘Overvalued'
Mike Sorohan email@example.com
CoreLogic, Irvine, Calif., said home prices rose by nearly 1 percent from July to August and by nearly 7 percent from a year ago.
The company's monthly Home Price Index said of the country's 100 largest metropolitan areas based on housing stock, 34 percent of cities have an "overvalued" housing stock as of August. The report called 27 percent of the top 100 metropolitan areas "undervalued" and 39 percent were at value. When looking at only the top 50 markets based on housing stock, 46 percent were overvalued, 16 percent were undervalued and 38 percent were at value.
"Nearly half of the nation's largest 50 markets are overvalued," said Frank Martell, president and CEO of CoreLogic. "The lack of real estate affordability has spread beyond the typically expensive coasts into the interior of the nation, hitting cities such as Denver, Nashville, Austin and Dallas."
The report said Washington and Utah posted double-digit annual home price increases in August (13.0 percent and 11.2 percent, respectively), followed by Michigan and Idaho (8.7 percent), Maine, Colorado and Oregon (8.6 percent) and Nevada (8.5 percent). West Virginia was the only state in negative (-1.7 percent).
At the metro level, Las Vegas led all cities with 8.4 percent annual growth, followed by Denver (8.3 percent), San Francisco (7.7 percent) and Los Angeles (6.9 percent).
Looking ahead, CoreLogic forecasts 4.7 percent annual home price growth; on a month-over-month basis home prices are expected to increase by 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 Frank Nothaft, chief economist for CoreLogic.