The firm’s Home Price Index for November 2017 shows a 7% annual gain in prices nationwide with Washington, Nevada, Utah and Idaho posting gains of 10% or more. The HPI gained 1% from the previous month.
“Rising home prices are good news for home sellers, but add to the challenges that home buyers face,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Growing numbers of first-time buyers find limited for-sale inventory for lower-priced homes, leading to both higher rates of price growth for ‘starter’ homes and further erosion of affordability.”
No relief ahead for 2018
First-time buyers in particular will find little relief for their stretched budgets in the year ahead, CoreLogic predicts.
Its HPI Forecast calls for a 4.2% rise in prices in the year ending November 2018, although this is a slower pace of appreciation which is likely to be reflected in December 2017’s figures, expected to be 0.4% down from November.
“Without a significant surge in new building and affordable housing stock, the relatively high level of growth in home prices of recent years will continue in most markets,” said Frank Martell, president and CEO of CoreLogic. “Although policymakers are increasingly looking for ways to address the lack of affordable housing, much more needs to be done soon to see a significant improvement over the medium term.”
CoreLogic’s data shows that 37% of the top 100 housing markets are overvalued (as of November 2017) with 36% undervalued and 26% at value. The figures do not include Honolulu as the data was unavailable.
More market update:
For the fourth straight month home prices trended higher in the latest report from CoreLogic.