The wave isn’t, in this case, the tide on the Jersey Shore, but the prices of homes nationwide. According to the reports that have been coming out in 2018, home prices are on the rise and are going to continue to do so for the next 12 months.

The numbers, across the board, are quite impressive. CoreLogic reported last week that home prices have increased by 7.1% nationally from May 2017 to May 2018. In just the last month, from April to May 2017, home prices have increased 1.1%, representing a double-digit appreciation trend line.

Right now, the engine of the economy is firing on all cylinders. Jobs are being created, pay is increasing, and optimism is leading the way in this historic economic and real estate boom.

Most likely, the biggest factor for home appreciation is the scarcity of inventory nationwide.

With the supply shortage, that have been affecting this market for the last 2 years, buyers who have the cash for the down payment and the credit line are much less patient to wait and shop for the perfect dream home.

Even in the higher mortgage rate environment of the second quarter, where the average May mortgage rate was 4.6%, is increasing numbers of homeowners are willing (and having) to pay rather than miss out, and have to pay significantly more in the months and the years to come.

Over-Valuation
What is causing some concern is that many of the reporting agencies, including CoreLogic, see that 40% of metropolitan areas are overvalued as of May 2018.

What makes this different from the grand market collapse that occurred in 2007 is that 26% of the top 100 metropolitan areas are looked upon as being undervalued, with another 34% seen as valued correctly.

According to CoreLogic, the Home Price Index is projected to increase by 5.1% over the next 12 months.