In December, home prices rose 4.7 percent year-over-year, with an 0.1 percent change from November, according to CoreLogic’s latest Home Price Index (HPI™).
“Higher mortgage rates slowed home sales and price growth during the second half of 2018,” says Dr. Frank Nothaft, chief economist for CoreLogic. “Annual price growth peaked in March and averaged 6.4 percent during the first six months of the year. In the second half of 2018, growth moderated to 5.2 percent. For 2019, we are forecasting an average annual price growth of 3.4 percent.”
Thirty-three 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; 40 percent are at value; and 27 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 4.6 percent through Dec. 2019.
“The slowdown in the rate of home-price appreciation reflects the impact of inventory shortages and growing affordability issues in many markets,” says Frank Martell, president and CEO of CoreLogic. “On the positive side, if home-price growth continues to moderate, interest rates remain stable and household incomes rise in 2019, it could help renters and first-time buyers to take the plunge and realize the dream of owning a home.”
For more information, please visit www.corelogic.com.
