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.