Skip to main content

Home Prices Up Again Amid Overvalued Metro Housing Markets

Phil Hall
Nov 07, 2017
Home prices were up by seven percent on a year-over-year measurement in September, according to new data from CoreLogi

Home prices were up by seven percent on a year-over-year measurement in September, according to new data from CoreLogic. On a month-over-month basis, September’s home prices were up by 0.9 percent from August.
 
Looking ahead, CoreLogic is predicting a 4.7 percent year-over-year increase in home prices from September 2017 to September 2018, but the company expects the September-to-October monthly transition to result in a 0.1 percent decline. West Virginia was the sole state to record a year-over-year home price decline, and only by a relatively scant 0.3 percent, while Washington led the states again in home price increases with a 12.5 percent year-over-year spike.
 
"Heading into the fall, home price growth continues to grow at a brisk pace," said Frank Nothaft, Chief Economist for CoreLogic. "This appreciation reflects the low for-sale inventory that is holding back sales and pushing up prices."
 
But in many areas, CoreLogic is warning that housing prices are too high. The latest CoreLogic Market Condition Indicators data analysis of housing values in the country's 100 largest metropolitan areas has determined that 36 percent of cities have an overvalued housing stock as of September, while 28 percent of the top 100 metros were undervalued and 36 percent were at value. When looking at only the top 50 markets based on housing stock, 48 percent were overvalued, 16 percent were undervalued and 36 percent were at value. CoreLogic identified the Las Vegas metro area as being the most overvalued at 9.7 percent, followed by Denver at 8.4 percent and Los Angeles at 7.1 percent.
 
"A strengthening economy, healthy consumer balance sheets and low mortgage interest rates are supporting the continued strong demand for residential real estate," said 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."
Home prices were up by seven percent on a year-over-year measurement in September, according to new data from CoreLogic

 
Published
Nov 07, 2017
ATTOM Announces Addition Of NMLS Data

Provides access to the names and NMLS IDs for those originating residential mortgage loans.

Industry News
Oct 05, 2022
DOJ: Lakeland Bank To Spend $13M To Settle 'Redlining' Claims

Agreement with N.J. bank is the third-largest redlining settlement in Justice Department history.

Industry News
Sep 29, 2022
Angel Oak Layoffs Add To Growing List Of Non-QM Cuts

About 20% of its staff, or 75 people, were affected.

Industry News
Sep 28, 2022
Redwood Trust Names New Chief Investment Officer

Also announces planned CoreVest leadership transition to be completed on 3rd anniversary of acquisition

Industry News
Sep 27, 2022
Fannie Mae Pilot Program Seeks To Help Improve Renters' Credit

Renters, including historically underserved groups, will benefit from paying on time each month.

Industry News
Sep 27, 2022
Suffolk County Data Breach Puts Contracts On Back Burner

Cyberattack beginning Sept. 8 prevents title services from closing loans.

Tech
Sep 27, 2022