Home Prices Up 6.7 Percent CoreLogic June 2017

According to a new report from CoreLogic home prices are up 6.7% (year over year) and 1.1% when compared to May 2017.  Low rates and limited inventory are helping fuel a surge in home values and it does not appear to be slowing down any time soon.  CoreLogic goes on to claim home values are up nearly 50% from the 2011 bottom and four of CoreLogicthe top 10 markets are currently overvalued.

According to their forecast they expect home values to rise over 5.00% between June 2017 and June 2018.  They are also expecting a 0.6% increase from June 2017 to July 2017.  Current mortgage rates are helping fuel the surge in home buying as mortgage rates remain near historic lows.

The report from CoreLogic is inline with other industry reports showing solid increases in home values over the last 12 months.  Labeling four of their top 10 home markets “over valued” shows us that the market is increasingly becoming less affordable for average buyers.  I would expect the number of affordable markets to increase over the next 6-12 months provided supply stays limited and mortgage rates stay low.

Notable Quotes From The Report:

“The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory,” said Dr. Frank Nothaft, chief economist for CoreLogic. “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.”

“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,” said Frank Martell, president and CEO of CoreLogic. “While 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 the industry resolves the housing supply challenge.”