Curve

New data: Home prices have moderated — but it might not last for long

Aly J. Yale
The Mortgage Reports contributor

How about those home prices?

Home prices are still slowing down, jumping just 3.6 percent over the last year. But according to a new forecast, the trend might not last for long.

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Tracking home prices

The latest CoreLogic Home Price Index shows house prices were up just 3.6 percent in August — a big improvement from last year’s 5.5 percent jump. 

According to CoreLogic’s chief economist Frank Nothaft, the slowdown was most significant on lower-priced properties.

“While the slowdown in appreciation occurred across the country at all price points, it was most pronounced at the lower end of the market,” Nothaft said. “Prices for the lowest-priced homes increased by 5.5 percent, compared with August 2018, when prices increased by 8.4 percent. This moderation in home-price growth should be welcome news to entry-level buyers.”

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Some cities saw even smaller jumps in housing prices. In Chicago, for example, prices rose just 1.5 percent over the last year. In San Diego and Houston, they increased 1.8 percent and 2.7 percent, respectively. The state of Connecticut actually saw house prices decline for the month, dipping 0.5 percent.

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Looking ahead

Though the stats are promising for potential homebuyers, CoreLogic’s HPI Forecast is less optimistic. According to the data, CoreLogic predicts home prices will increase 5.8 percent by the time next year.

Additionally, some states are seeing much bigger jumps than others. Idaho saw a whopping 11.6 percent uptick in house prices between August 2018 and 2019, while Utah’s prices rose 8 percent.

In total, more than a third of major metro areas are considered “overvalued.” 

Verify your new rate (Oct 18th, 2019)

Get today’s mortgage rates

Do you want to take advantage of today’s slowing home prices? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (Oct 18th, 2019)