For the first time since March 2018, annual home price growth has shown signs of renewed upward movement, according to new data from CoreLogic.
During April, home prices increased nationally by 3.6 percent year-over-year, which prices were up by one percent from March. Idaho was the only state in April to record double-digit annual growth at 10.3 percent, while Connecticut and North Dakota were only states with negative growth at -0.3 percent and -5 percent, respectively. CoreLogic also reported that 37 percent of the nation’s 100 largest metropolitan areas had an overvalued housing market in April, while 37 percent were at value and 26 percent were undervalued.
Looking ahead, CoreLogic forecast home prices will increase by 4.7 percent from April 2019 to April 2020 but will dip by 0.3 percent April 2019 to May 2019.
“The pickup in sales between March and April, has helped to counter the recent slowing in annual home-price growth,” said Frank Nothaft, chief economist at CoreLogic. “Mortgage rates are 0.6 percentage points below what they were one year ago and incomes are up, which has improved affordability for buyers. However, price growth has remained the highest for lower-priced homes, constraining housing choices for first-time buyers.”