CoreLogic reports stronger growth in March
Home prices continued higher in March both year-over-year and month-over-month, and the rise was larger than in February.
The CoreLogic Home Price Index gained 7% compared to March 2017 and was 1.4% higher than in February. February’s gains were 6.7% year-over-year and 1% month-over-month.
“Home prices grew briskly in the first quarter of 2018,” said Dr. Frank Nothaft, chief economist for CoreLogic. “High demand and limited supply have pushed home prices above where they were in early 2006. New construction still lags historically normal levels, keeping upward pressure on prices.”
CoreLogic is forecasting a 5.2% gain for home prices between March 2018 and March 2019, and for a modest 0.1% rise between March 2018 and April 2018.
“The dream of homeownership continues to fade away for the average prospective buyer. Lower-priced homes are appreciating much faster than higher-priced properties, making the affordability crisis progressively worse,” said Frank Martell, president and CEO of CoreLogic. “CoreLogic’s Market Condition Indicators now indicate that half of the top 50 markets in the country are overvalued because home prices in those areas have risen so much faster than incomes. This is clearly an unsustainable condition that can only be remedied by aggressive and coordinated public/private sector actions.”
