Its Home Price Index shows that the Pacific Northwest and mountain states were the drivers of the prices rises.
“The sharp increase in prices in Washington and Utah has been especially striking, with home price growth in both states accelerating by 3 percentage points since the beginning of this year,” said Dr. Frank Nothaft, chief economist for CoreLogic.
The firm's analysis of the 100 largest metros based on housing stock, shows that 34% of cities were overvalued as of July 2017, 28% were undervalued and 38% were at value.
However, when looking at only the top 50 markets, 46% were overvalued, 16% undervalued and 38% at value.
CoreLogic’s HPI forecast suggests home prices will rise 5% through to July 2018 and by 0.4% between July 2017 and August 2017.
“Home prices in July continued to rise at a solid pace with no signs of slowing down,” said Frank Martell, president and CEO of CoreLogic. “The combination of steadily rising purchase demand along with very tight inventory of unsold homes should keep upward pressure on home prices for the remainder of this year. While mortgage interest rates remain low, affordability cracks are emerging as over a third of U.S. top cities are now overvalued.”
More market update:
There was a 6.7% year-over-year rise in US home prices in July according to data from CoreLogic.