All 50 states recorded year-over-year home price increases, with four states recording double-digit growth: Washington (12.5 percent), Nevada (12.2 percent), Idaho (11.2 percent) and Utah (11.1) percent. Delaware recorded the lowest home price growth, with a scant 0.6 percent year-over-year uptick.
On a local level, CoreLogic’s Market Condition Indicators (MCI) data determined that 34 percent of the nation’s 100 largest metropolitan areas have an overvalued housing market as of February, while 30 percent were undervalued and 36 percent were at value. When looking at only the top 50 markets based on housing stock, 48 percent were overvalued, 18 percent were undervalued and 34 percent were at value.
“Family income is rising more slowly than home prices and mortgage rates, meaning that the mortgage payment takes a bigger bite out of income for new homebuyers,” said Frank Martell, President and Chief Executive Officer of CoreLogic. “CoreLogic’s Market Conditions Indicator has identified nearly one-half of the 50 largest metropolitan areas as overvalued. Often buyers are lulled into thinking these high-priced markets will continue, but we find that overvalued markets will tend to have a slowdown in price growth.”
Looking ahead, CoreLogic forecasts a 4.7 percent housing price index from February 2018 to February 2019, with California expected to see a 10.3 percent year-over-year change.