Home prices throughout the nation increased year-over-year by 7 percent in November, according to the CoreLogic Home Price Index (HPI).
The increase in home prices compared with October (1 percent) was smaller and CoreLogic is forecasting home prices will increase by 4.2 percent on a year-over-year basis from November 2017 to November 2018.
“Rising home prices are good news for home sellers, but add to the challenges that homebuyers face,” CoreLogic Chief Economist Frank Nothaft said in a release. “Growing numbers of first-time buyers find limited for-sale inventory for lower-priced homes, leading to both higher rates of price growth for ‘starter’ homes and further erosion of affordability.”
CoreLogic said housing stock in 37 percent of the nation’s largest metropolitan areas was overvalued; housing stock in 36 percent of the nation was undervalued; and housing stock in 26 percent if the nation was at value in November.
“Without a significant surge in new building and affordable housing stock, the relatively high level of growth in home prices of recent years will continue in most markets,” CoreLogic President and CEO Frank Martell said. “Although policymakers are increasingly looking for ways to address the lack of affordable housing, much more needs to be done soon to see a significant improvement over the medium term.”
According to the HPI, the largest year-over-year increases in home prices in November were in Washington (12.2 percent); Nevada (10.8 percent); Utah (10.5 percent); and in Idaho (10.4 percent).