Home prices across the country have risen by a total of 6.9% as of April of last year, and an additional 1.2% when compared to last month, according to CoreLogic’s Home Price Index (HPI) and HPI Forecast data. The data suggests that the price of an average American home will rise an additional 5.3% by April of next year.
CoreLogic’s chief economist Dr Frank Nothaft says “The best antidote for rising home prices is additional supply.” He explains that housing growth has not been matched by new construction rates, and that “more construction of for-sale and rental housing will alleviate housing cost pressures.”
A consistent low inventory-high price pattern has formed across the country’s housing market. CoreLogic claims that 40% of metropolitan-area markets are overvalued, with the steepest home price jump being 12.8% in Seattle. Nevada and Utah also saw significant increases, though all 50 states were affected.
An interesting note is the 5.8% increase in prices in Florida this past year despite the devastation of Hurricane Irma.