July 2018 CoreLogic Home Prices Up 6.2% Year-Over-Year

CoreLogic’s Home Price Index (HPI) shows that home prices in the USA are up 6.2 % year-over-year (reported up 0.3 % month-over-month). CoreLogic HPI is used in the Federal Reserves’ Flow of Funds to calculate the values of residential real estate. The quote of the day was in this data release:

…. While markets in the western part of the country continue to experience rapid home-price growth, many of those metros are overvalued, and will likely experience a slowdown soon …

Analyst Opinion of CoreLogic’s HPI

Home price averages seem to be averaging 6% year-over-year. According to CoreLogic:

…. revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

Note that CoreLogic forecasts:

Looking ahead, the CoreLogic HPI Forecast indicates that the national home-price index is projected to continue to increase by 5.1 percent on a year-over-year basis from July 2018 to July 2019. On a month-over-month basis, homeprices are expected to decrease by 0.2 percent from July to August 2018.

Dr Frank Nothaft, chief economist for CoreLogic stated:

With increased interest rates and home prices, the CoreLogic Home Price Index is rising at a slower rate than it was a year ago. While markets in the western part of the country continue to experience rapid home-price growth, many of those metros are overvalued, and will likely experience a slowdown soon.

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Frank Martell, president, and CEO of CoreLogic stated:

Many consumers see their homes as good investments. Our consumer research indicates homeowners, especially those in high-price growth markets, are confident that by waiting to sell, they will receive a greater return on investment than they would today. In other words, sellers are largely staying put. With fewer homes on the market, price pressure will continue to rise.