Home prices continued to grow in August, increasing 0.9% from July, and rising 6.9% from the same period last year, according to CoreLogic's Home Price Index.
Home prices are expected to increase by 4.7% from August 2017 to August 2018, and at a slower monthly pace, by 0.1% from August 2017 to September 2017.
"While growth in home sales has stalled due to a lack of inventory during the last few months, the tight inventory has actually helped stabilize price growth," said Frank Nothaft, CoreLogic chief economist, in a press release.
"Over the last three years, price growth in the CoreLogic national index has been between 5% and 7% per year, and CoreLogic expects home prices to increase about 5% by this time next year," he continued.
Of the country's largest metropolitan areas, 34% of cities have an overvalued stock as of August. About 27% were undervalued and 39% were at value.
When examining the top 50 markets by housing stock, 46% were overvalued, only about 16% were undervalued and 38% were at value.
"Nearly half of the nation's largest 50 markets are overvalued," said Frank Martell, president and CEO of CoreLogic, in a press release. "The lack of real estate affordability has spread beyond the typically expensive coasts into the interior of the nation, hitting cities such as Denver, Nashville, Austin and Dallas."
Among the largest cities, home prices in Las Vegas increased the most year-over-year, by 8.4%, followed by Denver, where they are up 8.3% from August of last year.