Home prices across the country had a 7 percent year-over-year increase during October, according to the latest CoreLogic Home Price Index (HPI).
The HPI also found that home prices increased 0.9 percent in October 2017 compared to September 2017.
CoreLogic is forecasting home prices will increase by 4.2 percent on a year-over-year basis from October 2017 to October 2018, but are expected to decrease by 0.2 percent from October 2017 to November 2017.
“Single-family residential sales and prices continued to heat up in October,” CoreLogic Chief Economist Frank Nothaft said in a release. “On a year-over-year basis, home prices grew in excess of 6 percent for four consecutive months ending in October, the longest such streak since June 2014. This escalation in home prices reflects both the acute lack of supply and the strengthening economy.”
In the nation’s top 50 markets, half percent were overvalued, 14 percent were undervalued and 36 percent were at market value, CoreLogic found.
“The acceleration in home prices is good news for both homeowners and the economy because it leads to higher home equity balances that support consumer spending and is a cushion against mortgage risk,” CoreLogic President and CEO Frank Martell said. “However, for entry-level renters and first-time homebuyers, it leads to tougher affordability challenges.”
“According to the CoreLogic Single-Family Rent Index, rents paid by entry-level renters for single-family homes rose by 4.2 percent from October 2016 to October 2017 compared with overall single-family rent growth of 2.7 percent over the same time,” Martell said.