In a press release, CoreLogic reported home prices increased by 4.7% year-over-year in December.
■ Twelve-month home-price growth rate was slowest since August 2012
■ Annual average price growth in 2018 was 5.8%, with annual average price growth forecast to slow in 2019 to 3.4%
■ After peaking in March, December marked the ninth consecutive month of decelerating annual HPI growth in the United States
CoreLogic Home Price Index (HPI™) and HPI Forecast™ for December 2018, which shows home prices rose both year over year and month over month. Home prices increased nationally by 4.7% year over year from December 2017. On a month-over-month basis, prices increased by 0.1% in December 2018.
The CoreLogic HPI Forecast indicates home prices will increase by 4.6% on a year-over-year basis from December 2018 to December 2019. Comparing the annual average HPI and HPI forecast for 2018 and 2019, average price growth is forecasted to slow from 5.8% to 3.4%. On a month-over-month basis, home prices are expected to decrease by 1% from December 2018 to January 2019. The CoreLogic HPI Forecast is a projection of home prices calculated using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.
When looking at only the top 50 markets based on housing stock, 40% were overvalued, 18% were undervalued and 42% were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent above the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10% below the sustainable level.