Home prices increased slightly from July through August, according to the CoreLogic Home Price Index (HPI).
The index found that home prices increased by 0.9 percent in August 2017 compared with July 2017. However, home prices jumped 6.9 percent from August 2016 through August 2017. CoreLogic predicts home prices will increase 4.7 percent from August 2017 to August 2018.
“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,” CoreLogic Chief Economist Frank Nothaft said in a release. “Over the last three years, price growth in the CoreLogic national index has been between 5 percent and 7 percent per year, and CoreLogic expects home prices to increase about 5 percent by this time next year.”
CoreLogic said the housing stock in 34 percent of the country’s 100 largest metropolitan areas was overvalued; housing stock in 27 percent of were undervalued; and housing stock in 39 percent were at value as of August 2017.
“Nearly half of the nation’s largest 50 markets are overvalued,” CoreLogic President and CEO Frank Martell said. “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.”
Other cities where housing stock was considered overvalued were Las Vegas, Miami, New York, and Washington, D.C.