Home prices saw strong growth in August on month over month and year over year bases, according to CoreLogic’s Home Price Index (HPI).
The HPI showed that home prices across the US increased 6.9% from August 2016. Month over month, home prices rose 0.9%, according to the HPI.
“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,” CoreLogic Chief Economist Frank Nothaft said. “Over the last three years, price growth in the CoreLogic national index has been between 5% and 7% per year, and CoreLogic expects home prices to increase about 5% by this time next year.”
“Nearly half of the nation’s largest 50 markets are overvalued,” CoreLogic President and CEO Frank Martell said. “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.”
Meanwhile, home prices are expected to grow 4.7% year-over-year by August 2018, according to the CoreLogic HPI Forecast. Prices are forecast to increase 0.1% from August to September.