CoreLogic: Across Country, Hot Home Price Appreciation

CoreLogic, Irvine, Calif., reported rapid home price appreciation nationwide, with several “overvalued” markets continuing to see double-digit increases.

The company’s monthly Home Price Index reported home prices rose by nearly 7 percent year over year and by 1.2 percent in April alone. All 50 states and the District of Columbia saw year over year gains in April, with hot coastal markets such as Seattle seeing annual growth at near 13 percent.

“The best antidote for rising home prices is additional supply,” said Frank Nothaft, chief economist for CoreLogic. “New construction has failed to keep up with and meet new housing growth or replace existing inventory. More construction of for-sale and rental housing will alleviate housing cost pressures.”

According to the CoreLogic Market Condition Indicators, an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock found that 40 percent of metropolitan areas have an “overvalued” housing market as of April. Nearly 30 percent areas were undervalued and 32 percent were at value. When looking at only the top 50 markets based on housing stock, 52 percent were overvalued, 14 percent were undervalued and 34 percent were at value.

Looking ahead, the CoreLogic HPI Forecast indicates the national home-price index is projected to continue to increase by 5.3 percent on a year-over-year basis through April 2019. On a month-over-month basis, home prices are expected to rise by 0.2 percent.