Home prices continue to rise in many US markets, with the latest data from CoreLogic showing a 7.1% year-over-year increase.
The figures for March 2017 from CoreLogic’s Home Price Index also show that prices were up 1.6% in the month from February and are now just 2.8% from their peak of 2006.
“Prices in more than half the country have already surpassed their previous peaks, and almost 20% of metropolitan areas are now at their price peaks,” said Dr. Frank Nothaft, chief economist for CoreLogic.
The firm is forecasting national home prices to rise by 4.9% by March 2018 with a 0.6% rise in the month from March to April 2017. Continued demand is being fuelled by stronger economic conditions including job gains, greater household formation, and still-attractive mortgage rates.
“Price gains were broad-based with 90% of metropolitan areas posting year-over-year gains,” said Frank Martell, president and CEO of CoreLogic.
However, there is a rising risk of overvaluation, which is already evident in some metros.
“CoreLogic data indicating that four of the largest 10 markets are now overvalued,” Martell said. “Geographically, gains were strongest in the West with Washington showing the highest appreciation at almost 13%, and Seattle, Tacoma and Bellingham posting gains of 13% to 14%."
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