Home Prices Uptick in August – CoreLogic Data Shows 44% of Metropolitan Areas are Overvalued

For the 42nd month in a row, national home prices made gains in August according to CoreLogic’s Home Price Insights Report. Including distressed sales, home prices rose nationally by 1.2% compared to the previous month and were 6.9% greater than August 2014. While the report forecasted home prices to remain flat in September, they anticipated seeing a 4.3% year-over-year increase. CoreLogic’s Chief Economist, Dr. Frank Nothaft, stated, “Economic forecasts generally project higher mortgage rates and more single-family housing starts for 2016. These forces should dampen demand and augment supply, leading to a moderation in home price growth.”

Idaho (+5.3%), Montana (+3.4%), Washington (+10.3%), and Wyoming (+0.6%) each had increases in home prices when including distressed sales. Yet, CoreLogic’s Market Condition Overview, which measures the “distance between a market’s long-term fundamental value and” home price index, indicated that 44% of the metropolitan areas they track were considered overvalued in August 2015. Markets in southwestern Idaho were indicated as overvalued while markets in eastern Idaho were reflected as undervalued. View the entire report at http://bit.ly/1k2MeuU.

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