Top 15 States Where Home Prices Are Still Surging

house for sale

Home prices are still continuing to increase. | Scott Olson/Getty Images

The good times continue to roll for the housing market. Home prices in the United States have increased on a year-over-year basis for 58 consecutive months. While national prices are expected to keep rising throughout 2017, some states are witnessing much stronger appreciation than others. The market is so hot right now that even a solid salary might not be enough to buy a home.

In August, home prices jumped 6.9% from a year earlier, according to the latest report from CoreLogic, a leading provider of real estate information. And CoreLogic expects home prices to climb 4.7% by August 2018. With housing bubble concerns rising in some parts of the country, national home prices are set to rise even further. That’s good news for owners, but buyers continue to face affordability issues, which will likely become even worse in the coming years.

“While growth in home sales has stalled due to a lack of inventory during the last few months, the tight inventory has actually helped stabilize price growth,” says Frank Nothaft, chief economist for CoreLogic. “Over the last three years, price growth in the CoreLogic national index has been between 5% and 7% per year, and CoreLogic expects home prices to increase about 5% by this time next year.”

Affordability issues could be even more severe in a few booming markets across the country.

“Nearly half of the nation’s largest 50 markets are overvalued,” says Frank Martell, president and CEO of CoreLogic. “The lack of real estate affordability has spread beyond the typically expensive coasts into the interior of the nation, hitting cities, such as Denver, Nashville, Austin, and Dallas.”

West Virginia was the only one state that failed to post home price appreciation year over year in August. On the other side of the spectrum, two states managed to jump by double digits. Let’s take a quick look at the 15 states that experienced the strongest gains, based on a year-over-year basis. Tie breakers were decided by predicted year-over-year changes, then month-over-month changes.

15. Rhode Island

Harbor view of Providence, Rhode Island

Home prices in Providence are rising, just as they are across Rhode Island. | SeanPavonePhoto/iStock/Getty Images

  • 12-month change: 6.2%
  • Forecasted year-over-year change: 4.5%

14.  Florida

Florida Gator player

Home prices could see a considerable bump in the next year. | Sam Greenwood/Getty Images

  • 12-month change: 6.2%
  • Forecasted year-over-year change: 6.6%

13. Massachusetts

Boston in the fall

The leaves are falling, but home prices are going up in Massachusetts. | SeanPavonePhoto/iStock/Getty Images

  • 12-month change: 6.6%
  • Forecasted year-over-year change: 4.8%

12. Hawaii

Hawaii

Palm trees and ocean waves don’t come cheap. | Mike Ehrmann/Getty Images

  • 12-month change: 6.7%
  • Forecasted year-over-year change: 5.4%

11. Tennessee

downtown Nashville, Tennessee

A house in Nashville, or anywhere else in Tennessee, will cost you more these days. | Sean Pavone/iStock/Getty Images

  • 12-month change: 7.1%
  • Forecasted year-over-year change: 3.4%

10. California

California homes

Look honey, there are some more beautiful homes we can’t afford. | Thinkstock

  • 12-month change: 7.1%
  • Forecasted year-over-year change: 8.7%

9. New York

Times Square in New York City

Of course New York City doesn’t come cheap. | AndreyKrav/iStock/Getty Images

  • 12-month change: 7.9%
  • Forecasted year-over-year change: 5.2%

8. Nevada

Las Vegas

The only thing hotter than the Vegas Strip in Nevada are the home prices. | Ethan Miller/Getty Images

  • 12-month change: 8.5%
  • Forecasted year-over-year change: 8.7%

7. Colorado

Denver

Denver: It’s where home prices are a mile high. | Kevork Djansezian/Getty Images

  • 12-month change: 8.6%
  • Forecasted year-over-year change: 5.8%

6. Oregon

bike locked up in Portland, Oregon

They probably had to sell their car to afford the mortgage. | Travel Portland via Facebook

  • 12-month change: 8.6%
  • Forecasted year-over-year change: 6.1%

5. Maine

lubec, maine

Expect to pay more if you want to live in Maine. | Don Emmert/AFP/Getty Images

  • 12-month change: 8.6%
  • Forecasted year-over-year change: 7.3%

4. Idaho

sun valley, idaho

Idaho is becoming more popular — and expensive. | Mark Davis/Getty Images for Sun Valley Film Festival

  • 12-month change: 8.7%
  • Forecasted year-over-year change: 4.9%

3. Michigan

Detroit, Michigan

Detroit is seeing prices increase. | Thinkstock

  • 12-month change: 8.7%
  • Forecasted year-over-year change: 5.7%

2. Utah

Utah

Don’t worry, the rise in home prices will also help things thaw out in Utah. | George Frey/Getty Images

  • 12-month change: 11.2%
  • Forecasted year-over-year change: 4.5%

1. Washington

Seahawks winning

Washington home prices top them all. | Ronald Martinez/Getty Images

  • 12-month change: 13%
  • Forecasted year-over-year change: 5.4%

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