Month-to-month and in the past year, home prices have risen, according to CoreLogic’s latest Home Price Index (HPI™). In August, home prices stacked 0.1 percent month-over-month and 5.5 percent year-over-year—an overall slowing.
“The rise in mortgage rates this summer to their highest level in seven years has made it more difficult for potential buyers to afford a home,” says Dr. Frank Nothaft, chief economist for CoreLogic. “The slackening in demand is reflected in the slowing of national appreciation, as illustrated in the CoreLogic Home Price Index. National appreciation in August was the slowest in nearly two years, and we expect appreciation to slow further in the coming year.”
Thirty-eight percent of the 100 largest markets are overvalued, a condition CoreLogic defines as when “home prices are at least 10 percent higher than the long-term, sustainable” trend; 44 percent are at value; and 18 percent are undervalued (“at least 10 percent below the long-term, sustainable” trend).
According to a forecast in the report, prices are projected to rise 4.7 percent through August 2019.
“In some markets, homebuyers and sellers are remaining cautious and taking a pause as price appreciation continues to rise,” says Frank Martell, president and CEO of CoreLogic. “By waiting to sell, homeowners believe they will get the greatest return on their investment; the more money they have for a down payment, the easier the purchase payments will be for their next home.”
For more information, please visit www.corelogic.com.
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