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.
Caveats Relating to Home Price Indices
