CoreLogic’s Home Price Index (HPI) shows that home prices in the USA are up 7.0 % year-over-year (reported up 0.9 % month-over-month). CoreLogic HPI is used in the Federal Reserves’ Flow of Funds to calculate the values of residential real estate.

Analyst Opinion of CoreLogic’s HPI

CoreLogic year-over-year rate of growth has been steady for three years – with a higher number issued initially and later downwardly revised in the following months. This month they included the following table which speaks for itself:

Home Price Change and Market Conditions for Select Metropolitan Areas

Select Metropolitan Areas September 2017 12-Month
HPI Change
Year Over Year
Single-Family Market
Condition
as of
September 2017 Las Vegas-Henderson-Paradise NV 9.7% Overvalued Denver-Aurora-Lakewood CO 8.4% Overvalued Los Angeles-Long Beach-Glendale CA 7.1% Overvalued Boston MA 7.0% At value San Francisco-Redwood City-South San Francisco CA 6.4% At value Miami-Miami Beach-Kendall FL 5.5% Overvalued Washington-Arlington-Alexandria DC-VA-MD-WV 4.6% Overvalued New York-Jersey City-White Plains NY-NJ 4.5% Overvalued Chicago-Naperville-Arlington Heights IL 4.0% At value Houston-The Woodlands-Sugar Land TX 3.3% Overvalued

Source: CoreLogic September 2017

Dr. Frank Nothaft, chief economist for CoreLogic stated:

Heading into the fall, home price growth continues to grow at a brisk pace. This appreciation reflects the low for-sale inventory that is holding back sales and pushing up prices. The CoreLogic Single-Family Rent Index rose about 3 percent over the last year, less than half the rise in the national Home Price Index.

 

Frank Martell, president, and CEO of CoreLogic stated:

A strengthening economy, healthy consumer balance sheets and low mortgage interest rates are supporting the continued strong demand for residential real estate. While demand and home price growth is in a sweet spot, a third of metropolitan markets are overvalued and this will become more of an issue if prices continue to rise next year as we anticipate.