U.S. home prices increased 1.4% in March compared with February and were up 7% compared with March 2017, according to CoreLogic’s home price index.
Currently, the software, data and analytics firm is forecasting that home prices will increase 0.1% in April and will rise 5.2% on a year-over-year basis from March 2018 to March 2019.
“Home prices grew briskly in the first quarter of 2018,” says Frank Nothaft, chief economist for CoreLogic, in a release. “High demand and limited supply have pushed home prices above where they were in early 2006. New construction still lags historically normal levels, keeping upward pressure on prices.”
According to CoreLogic Market Condition Indicators (MCI) data, an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, 37% of metropolitan areas had an overvalued housing market as of March.
About 28% of the top 100 metropolitan areas were undervalued and 35% were at value, according to CoreLogic’s analysis.
When looking at only the top 50 markets based on housing stock, 50% were overvalued, 14% were undervalued and 36% were at value.
“Affordability continues to slip away from the average buyer,” says Frank Martell, president and CEO of CoreLogic. “Lower-priced homes are appreciating much faster than higher-priced properties, making the affordability crisis even worse. Now, the CoreLogic Market Condition Indicators show half of the top 50 markets in the country are overvalued because home prices in those areas have risen so much faster than incomes.”
