Home prices rose 6.7% in June compared with the same month a year ago, according to CoreLogic. The research firm had previously forecast a rise of 5.3%, more in line with the index jumps in for the first three months of the year. The data include sales of distressed properties.
Month over month, June prices rose 1.1%, including distressed home sales. CoreLogic expects July housing prices to rise another 5.2% year over year to June 2018 and to rise by 0.6% month over month.
CEO Frank Martell noted:
Home prices are marching ever higher — up almost 50 percent since the trough in March 2011. With no end to the escalation in sight, affordability is rapidly deteriorating nationally and especially in some key markets such as Denver, Houston, Miami and Washington. While the low mortgage rates are keeping the market affordable from a monthly payment perspective, affordability will likely become a much bigger challenge in the years ahead until and when the industry resolves the housing supply challenge.
Chief Economist Frank Nothaft added:
The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory. As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years.
Including distressed sales, home prices rose the most in Utah (10.7%) and Washington (12.7%).
The 10 U.S. metropolitan areas posting the largest increases were:
- Denver: up 8.7%
- San Diego: up 7.5%
- Las Vegas: up 7.5%
- Los Angeles: up 6.7%
- Boston: up 6.6%
- San Francisco: up 5.3%
- Washington, D.C.: up 4.9%
- Miami: up 4.4%
- Chicago: up 3.6%
- Houston: up 3.4%
The CoreLogic June report is available here.