CoreLogic: U.S. Home Prices Continued to Rise in September

U.S. home prices increased 0.9% in September compared with August and were up 7% compared with September 2016, according to CoreLogic’s home price index.

West Virginia was the only state that saw home prices decrease, on average. Prices there were down 0.3% compared with August.

Currently, CoreLogic is forecasting that home prices will increase by 0.1% in October and by 4.7% between September 2017 and September 2018.

“Heading into the fall, home price growth continues to grow at a brisk pace,” says Frank Nothaft, chief economist for CoreLogic, in a statement. “This appreciation reflects the low for-sale inventory that is holding back sales and pushing up prices. The CoreLogic Single-Family Rent Index rose about three percent over the last year – less than half the rise in the national Home Price Index.”

CoreLogic estimates that the housing stock is “overvalued” in 36% of the top 100 largest metropolitan areas.

As of September, 28% of the top 100 metros had housing stock that was “undervalued,” while 36% of metros had stock that was “at value.”

When looking at only the top 50 markets, 48% were “overvalued,” 16% were “undervalued” and 36% were “at value,” according to the firm’s analysis.

“A strengthening economy, healthy consumer balance sheets and low mortgage interest rates are supporting the continued strong demand for residential real estate,” says Frank Martell, president and CEO of CoreLogic. “While demand and home price growth is in a sweet spot, a third of metropolitan markets are overvalued, and this will become more of an issue if prices continue to rise next year, as we anticipate.“

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