There was a further rise in home prices in June, a 6.7% increase year-over-year and 1.1% month-over-month, CoreLogic says
There was a further rise in home prices in June, a 6.7% increase year-over-year and 1.1% month-over-month, CoreLogic says.
It’s data shows that since the market bottom of March 2011, prices have increased almost 50% and CoreLogic president and CEO Frank Martell says there’s no end in sight for the escalation, exacerbating affordability challenges.
“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,” he said.
Low supply continues to restrict sales growth and CoreLogic’s chief economist Dr Frank Northaft says unsold inventory as of Q2 2017 was just 1.9% of all households, a 30-year low.
The firm’s latest Market Condition Indicators report warns that four of the 10 largest metros are considered overvalued.
Denver-Aurora-Lakewood, CO, Houston-The Woodlands-Sugar Land, TX, Miami-Miami Beach-Kendall, FL and Washington-Arlington-Alexandria, DC-VA-MD-WV all have home prices at least 10% higher than the long-term, sustainable level.
“Affordability is rapidly deteriorating nationally and especially in some key markets such as Denver, Houston, Miami and Washington,” added Martell.
As for the months ahead, CoreLogic predicts a 5.2% rise nationwide from June 2017 to June 2018 and a 0.6% rise from June 2017 to July 2017.
It’s data shows that since the market bottom of March 2011, prices have increased almost 50% and CoreLogic president and CEO Frank Martell says there’s no end in sight for the escalation, exacerbating affordability challenges.
“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,” he said.
Low supply continues to restrict sales growth and CoreLogic’s chief economist Dr Frank Northaft says unsold inventory as of Q2 2017 was just 1.9% of all households, a 30-year low.
The firm’s latest Market Condition Indicators report warns that four of the 10 largest metros are considered overvalued.
Denver-Aurora-Lakewood, CO, Houston-The Woodlands-Sugar Land, TX, Miami-Miami Beach-Kendall, FL and Washington-Arlington-Alexandria, DC-VA-MD-WV all have home prices at least 10% higher than the long-term, sustainable level.
“Affordability is rapidly deteriorating nationally and especially in some key markets such as Denver, Houston, Miami and Washington,” added Martell.
As for the months ahead, CoreLogic predicts a 5.2% rise nationwide from June 2017 to June 2018 and a 0.6% rise from June 2017 to July 2017.
