All 50 states recorded year-over-year home price increases, with the highest spikes recorded in Washington (12.5 percent) and Nevada and Utah (tied at 10.1 percent). The metro areas with greatest 12-month home price appreciation, Las Vegas (10.2 percent) and Denver (8.3 percent), were marked as overvalued by CoreLogic, which also stated that half of the nation’s top 50 markets were overvalued.
CoreLogic also forecasted that home prices will increase by 4.2 percent on a year-over-year basis from October 2017 to October 2018. However, the company predicted a 0.2 percent month-over-month decline from October to November.
"The acceleration in home prices is good news for both homeowners and the economy because it leads to higher home equity balances that support consumer spending and is a cushion against mortgage risk," said Frank Martell, President and CEO of CoreLogic. "However, for entry-level renters and first-time homebuyers, it leads to tougher affordability challenges. According to the CoreLogic Single-Family Rent Index, rents paid by entry-level renters for single-family homes rose by 4.2 percent from October 2016 to October 2017 compared with overall single-family rent growth of 2.7 percent over the same time."