Among the states, Idaho had the greatest year-over-year price gains with a 9.9 percent upswing, while Connecticut had the weakest with an anemic 0.2 percent rise. CoreLogic also reported that 34 percent of the nation’s 100 largest metropolitan areas had an overvalued housing market as of December, while 40 percent were at value and 26 percent were undervalued.
Looking ahead, CoreLogic forecast an annual home price growth of 5.2 percent from December 2019 to December 2020
and a 0.1 percent uptick from December 2019 to January 2020, which would mark a new peak in prices since the last recorded peak in April 2006.
“Moderately priced homes are in high demand and short supply, pushing up values and eroding affordability for first-time buyers,” said Frank Nothaft, chief economist at CoreLogic. “Homes that sold for 25 percent or more below the local median price experienced a 5.9 percent price gain in 2019, compared with a 3.7 percent gain for homes that sold for 25 percent or more above the median.”