Home prices nationwide came in at 3.4% in June 2019 according to the recent CoreLogic analysis. This increase exceeds the inflation rate but still is manageable and in no way reflects the overheated real estate market of 2006-7. This is also a far slower pace of appreciation than the current stock market, which in 2019 is approximately 19%.
As long as the current positive economic climate continues into 2020, CoreLogic sees home prices increasing by 5.2% year-over-year. CoreLogic also sees the average home price increasing by .5% from June 2019 to July 2019.
The market niche for home appreciation appears to be strongest in the lower-priced home range, which is exactly where first-time home buyers are buying. First time home buyers also are benefiting from a reduction in the overall average mortgage rates by .8% points from where they were back in 2018.
Approximately 45% of older Millennials, ages 32-39, indicate that they have purchased a home in the last 3 years. Among these older Millennials, another 25% indicate that they are likely to purchase a home within the next year. Affordability continues to provide some barrier to entry for Millennials looking to own rather than rent, but the strong economy appears to be giving them the additional boost necessary to take the plunge.
Within the top 100 largest metropolitan areas that CoreLogic tracks, 38% of the cities have receive Corelogic’s overvalued designation; this includes the New York – New Jersey metropolitan area. Only 24% of the top 100 metropolitan areas are deemed to be undervalued.