CoreLogic: October Home Prices Up 5.4 Percent Year Over Year

CoreLogic, Irvine, Calif., said home price appreciation continued to slow in October, marking the fourth consecutive month of annual growth under 6 percent.

The company’s monthly Home Price Index said home prices increased nationally by 5.4 percent year over year. On a month-over-month basis, prices increased by 0.5 percent in October.

Despite the slowdown, North Dakota was the only state to show a year-over-year decline in prices this month, while West Virginia, Nevada and Idaho showed double-digit growth.

“Rising prices and interest rates have reduced home buyer activity and led to a gradual slowing in appreciation,” said Frank Nothaft, chief economist for CoreLogic. “October’s mortgage rates were the highest in seven and a half years, eroding buyer affordability.”

According to the CoreLogic Market Condition Indicators, an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, 35 percent of metropolitan areas have an overvalued housing market as of October. Twenty-four percent were undervalued and 41 percent were at value. When looking at only the top 50 markets based on housing stock, 44 percent were overvalued, 16 percent were undervalued and 40 percent were at value.

Looking ahead, the CoreLogic HPI Forecast projects home prices to increase by 4.8 percent on a year-over-year basis through October 2019. Month-over-month basis, home prices are expected to decrease by 0.7 percent.