In the first quarter of 2019, 1,002 renters and homeowners were surveyed by CoreLogic, together with RTi Research. This study acts as a quarterly pulse of U.S. housing market dynamics. Now CoreLogic has released its Home Price Index (HPI) and HPI Forecast for May 2019, and it shows that home prices rose both year over year and month over month.
Each quarter, the research focuses on a different issue related to current housing topics and analyzes home price trends.
According to the May report, home prices increased nationally by 3.6% from May 2018. On a month-over-month basis, prices increased by 0.9% in May 2019, even though April 2019 data was revised.
After several months of moderation earlier this year, the CoreLogic HPI Forecast indicates home prices will increase by 5.6% from May 2019 to May 2020. On a month-over-month basis, home prices are expected to increase by 0.8% from May 2019 to June 2019, bringing single-family home prices to an all-time high.
CoreLogic’s Market Condition Indicators, an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, suggests that 38% of metropolitan areas have an overvalued housing market as of May 2019. Also as of May 2019, 24% of the top 100 metropolitan areas were undervalued and 38% were at value.
Frank Martell, president and CEO of CoreLogic, commented:
The recent and forecasted acceleration in home prices is a good and bad thing at the same time. Higher prices and a lack of affordable homes are two of the most challenging issues in housing today, and every buyer, seller and industry participant is being impacted. The long-term solution lies in expanding supply, which will require aggressive and effective collaboration between policy makers, state and local government entities and home builders.