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U.S. home prices climbed 3.4% annually in June
7 Aug
U.S. home prices have increased year over year and month over month in June, CoreLogic’s latest Home Price Index revealed.

As the World Property Journal reports, the U.S. saw home prices rise by 3.4% from June 2018, while they increased by 0.4% on month-over-month basis.

Single-family home prices are currently at their highest and show no sign of slowing down as they keep rising annually. According to the CoreLogic HPI Forecast, which is calculated through the use of CoreLogic HPI and other economic variables, annual price growth will climb by 5.2% from June 2019 to June 2020.

Dr. Frank Nothaft, chief economist at CoreLogic, said: "Tepid home sales have caused home prices to rise at the slowest pace for the first half of a year since 2011. Price growth continues to be faster for lower-priced homes, as first-time buyers and investors are both actively seeking entry-level homes. With incomes up and current mortgage rates about 0.8 percentage points below what they were one year ago, home sales should have a better sales pace in the second half of 2019 than a year earlier, leading to a quickening in price growth over the next year."

The CoreLogic Market Condition Indicators (MCI) showed that 38% of metropolitan areas have an overvalued housing market, when observing the housing values of the 100 biggest metropolitan areas based on housing stock. 24% were undervalued, while 38% were at value. A housing market is categorized according to value depending on the comparison of home prices and their long-run sustainable levels.

Meanwhile, when only the top 50 markets were observed, it was found that 42% were overvalued, 16% were undervalued and 42% were at value.

Findings from CoreLogic and RTi Research of Norwalk, Connecticut, showed that a rise in home prices in lower-cost homes impact older millennials (ages 30 - 39), and this age group was also revealed to actively search for a new home the most from all age cohorts. Furthermore, older millennials have a better outlook towards purchasing a home than older generations, and 37% think purchasing a home within their market is somewhat affordable.

Frank Martell, president and CEO of CoreLogic, said: "Millennial homebuyers are no longer a trend on the industry horizon. In fact, they are the new, first-time homebuyers of today. However, only about half of recent millennial buyers were satisfied with the number of options of available homes in their market or price range. Affordable housing continues to be a growing issue. A deeper look at the data shows that 43% of those surveyed indicated they couldn't afford to buy a new home or are concerned they won't be able to.”

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