Home prices rose 6.9% in August compared with the same month a year ago, according to CoreLogic. The research firm had previously forecast a rise of 5%, 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, August prices rose 0.9%, including distressed home sales. CoreLogic expects August housing prices to rise another 4.7% year over year by August 2018 and to rise by 0.1% month over month.
CEO Frank Martell noted:
Nearly half of the nation’s largest 50 markets are overvalued. The lack of real estate affordability has spread beyond the typically expensive coasts into the interior of the nation, hitting cities such as Denver, Nashville, Austin and Dallas.
Chief economist Frank Nothaft added:
While growth in home sales has stalled due to a lack of inventory during the last few months, the tight inventory has actually helped stabilize price growth. Over the last three years, price growth in the CoreLogic national index has been between 5 percent and 7 percent per year, and CoreLogic expects home prices to increase about 5 percent by this time next year.
Including distressed sales, home prices rose the most in Utah (11.2%) and Washington (prices up 13%).
The 10 U.S. metropolitan areas posting the largest increases were:
- Las Vegas: up 8.4%
- Denver: up 8.3%
- San Francisco: up 7.7%
- San Diego: up 7.4%
- Los Angeles: up 6.9%
- Boston: up 6.7%
- Miami: up 5.5%
- Washington, D.C.: up 4.1%
- Chicago: up 3.9%
- Houston: up 2.1%
The CoreLogic August report is available here.