Home Prices Remained Strong During Holidays

[area] home prices
The November home sales market appeared unwilling to acknowledge impending winter, the usual pre-holiday slowdown, or all the predictions of gradually moderating home prices. September and October new and existing home sales recovered strongly from a listless summer and prices, which had never slowed appreciably, responded to the resurgent demand.

CoreLogic has reported out the first figures for November, and its Home Price Index (HPI) was up 1.0 percent on a month-over-month basis, breaking out of the 0.9 percent pattern in which the index had been locked for the previous four months. Monthly price increases year-to-date in 2017 through November now average 1.07 percent.

The HPI increased on a national basis by 7.0 percent, the same degree of annual appreciation reported for September and October. Year-over-year increases reported by CoreLogic have been at 6.6 percent or more for each of the first 11 months of 2017.

The West continues to lead the nation in home price increases with four states posting annual gains exceeding 10 percent. Washington State prices were up 12.2 percent compared to November 2016. Nevada followed at 10.8 percent, and Utah and Idaho saw annual appreciation of 10.5 and 10.4 percent respectively. New Mexico had the smallest year-over-year increase at 2.0 percent with Oklahoma, Kansas, Alaska, and Connecticut gaining only fractionally more than that.

“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.”

CoreLogic considers 37 of the 100 largest metropolitan areas it covers to be currently overvalued. Its Market Condition Indicators (MCI) categorizes home prices in individual markets as undervalued, at value, or overvalued by comparing current prices to their long-run sustainable levels, taking into account local market fundamentals such as disposable income. Markets with prices 10 percent or more above or below those sustainable levels are considered overvalued or undervalued respectively. Thirty-six are considered undervalued and 26 are at value (data on one market, Honolulu, was not available.) Within the top 50 markets, half were overvalued, 14 percent were undervalued, and 36 percent were at value.

“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.”

Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 4.2 percent on a year-over-year basis from November 2017 to November 2018, and are expected to decrease by 0.4 percent from November 2017 to December 2017. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables.

Article originally appeared on Mortgage News Daily

The information contained in this blog has been prepared by an independent third party and is distributed to consumers for educational purposes only. The information is considered reliable but not guaranteed to be accurate. The opinions expressed in this article do not represent the opinions of Skyline Home Loans. This is designed to give helpful tips and is not intended to give legal advice. This is not a prequalification, preapproval, loan approval or commitment to lend.

8blocks has a business relationship with Skyline Financial Corp. (“Skyline”). 8blocks creates co-branded websites for Skyline and Booker Howard. Skyline and Booker Howard compensate 8blocks for this service. You are not required to use Skyline or Booker Howard’s services as a condition to the purchase or sale of a home or other property. There are other mortgage lenders that may be able to offer you a mortgage loan. You are free to shop around to determine that you are receiving the mortgage rates and terms that fit your needs. Your choice of a mortgage lender or realtor will not affect current or future services and products provided to you by these unaffiliated entities.

Skyline Financial Corp. is not affiliated with Booker Howard or their brokerage. Each is solely responsible for the products and services it offers.

Skyline Financial Corp. dba Skyline Home Loans, Nationwide Mortgage Licensing System (NMLS) Company ID# 12072. Arizona Mortgage Banker License #927740, Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act File No: 4130296, Georgia Residential Mortgage Licensee, Illinois Residential Mortgage Licensee, Licensed by the New Hampshire Banking Department License #19536-MB, Ohio Broker/Banker Registration #MBMB-850231-000, Oregon Mortgage Lender License ML-2797, Washington Consumer Loan Company License CL-12072. Refer to www.nmlsconsumer.org and input NMLS#12072 to see where Skyline Financial Corp. is a licensed lender.