Home prices in February rose by four percent from the previous year and inched up by 0.7 percent from the previous month, according to new data from CoreLogic.
Idaho was the only state to record double-digit year-over-year gains in home prices with a 10.2 percent increase, while North Dakota was the sole state with negative growth via its 1.7 percent decline. Furthermore, CoreLogic reported that 35 percent of the nation’s 100 largest metro areas had an overvalued housing market in February, while 27 percent of these metro areas were undervalued and 38 percent were at value.
CoreLogic also forecasted home prices will rise by 4.7 percent on a year-over-year basis from February 2019 to February 2020 but will drop by 0.5 percent from February 2019 to March 2019.
“During the first two months of the year, home-price growth continued to decelerate,” said Frank Nothaft, Chief Economist for CoreLogic. “This is the opposite of what we saw the last two years when price growth accelerated early. With the Federal Reserve’s announcement to keep short-term interest rates where they are for the rest of the year, we expect mortgage rates to remain low and be a boost for the spring buying season. A strong buying season could lead to a pickup in home-price growth later this year.”