Home prices in June increased by 3.4 percent on a year-over-year basis and by 0.4 percent from May, according to new data from CoreLogic.
No state recorded a double-digit year-over-year home price increase in June, although Idaho came closest with a 9.9 percent spike. Three states reported negative home price movement: South Dakota (-4.7 percent), Connecticut (-0.4 percent) and Delaware (-0.2 percent). At a metro-level measurement, CoreLogic determined that 38 percent of the nation’s 100 largest metro areas had overvalued housing market as of June, while another 38 percent were at value and 24 percent were undervalued.
Looking ahead, CoreLogic forecasted annual price growth will increase by 5.2 percent from June 2019 to June 2020 and will inch up 0.5 percent June 2019 to July 2019.
“Tepid home sales have caused home prices to rise at the slowest pace for the first half of a year since 2011,” said Frank Nothaft, chief economist at CoreLogic. “Price growth continues to be faster for lower-priced homes, as first-time buyers and investors are both actively seeking entry-level homes. With incomes up and current mortgage rates about 0.8 percentage points below what they were one year ago, home sales should have a better sales pace in the second half of 2019 than a year earlier, leading to a quickening in price growth over the next year.”