Affordability challenge remains even as home price growth slows
Home price growth is likely to slow in the near future but affordability remains a concern, especially at the lower end of the market, according to CoreLogic.
Prices increased by 7% on a year-over-year basis in November for the third consecutive month. Compared with revised data for October, prices increased by 1%; CoreLogic originally forecast a 0.2% decline.
But CoreLogic expects a 0.4% decline in prices in December from November. Its forecast for November 2018 is for a 4.2% annual increase.
"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," Frank Martell, CoreLogic's president and CEO, said in a press release.
"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."
Among 99 of the nation's 100 largest metropolitan areas (data for Honolulu was not available), the housing stock in 37 of them was considered to be overvalued, CoreLogic said. There were 26 markets at value and 36 markets where the housing stock was undervalued.
The Las Vegas metropolitan area had an 11.1% annual increase in home prices, while the San Francisco area had an 8.9% increase and Denver had an 8.1% increase.
There were four states with annual price increases over 10%: Washington, 12.2%; Nevada, 10.8%; Utah, 10.5%; and Idaho, 10.4%.
The smallest increase in home prices from November 2016 was in New Mexico at 2%, followed by Oklahoma at 2.2%, with Alaska and Kansas each at 2.3%. CoreLogic did not have any statewide data for Hawaii.