I recently got a copy of CoreLogic’s Home Price Insights (HPI) for the U.S. and decided to present you with some numbers from the report that might help you decide to buy or sell as the market stands today.
January 2018 National Home Prices
- Increased year-over-year in January by 6.6 percent compared to January 2017.
- Increased by 0.5 percent from December 2017.
- The report indicates that home prices WILL rise by 4.8 percent between January 2018 and January 2019.
- Home prices are expected to remain flat between January and February 2018.
CoreLogic’s Chief Economist Frank Northaft states that “Entry-level homes have been in particularly short supply, leading to more rapid home-price growth compared with more expensive homes. Homes with a purchase price less than 75 percent of the local area median had price growth of 9.0 percent during the year ending January 2018. Homes that sold for more than 125 percent of median appreciated 5.3 percent over the same 12-month period. Thus, first-time buyers are facing acute affordability challenges in some high-cost areas.”
Affordability Continues to Erode
- President and CEO of CoreLogic, Frank Martell says that “a rise in mortgage rates coupled with home-price growth further erodes affordability. CoreLogic has identified nearly one-half of the 50 largest metropolitan areas as overvalued. Millennials who are looking to become first-time homeowners find it particularly challenging to find an affordable home in these areas. Our projections continue to show tightness in the entry-level market for the foreseeable future, which could further prevent millennials from purchasing homes in 2018 and 2019, even as much of that generation reaches its prime home-buying years.”
Here are the top 10 metros that CoreLogic studied.
- Boston, Washington, Miami, Chicago, Houston, Denver, Las Vegas, San Diego, Los Angeles, and San Francisco.
- These large cities continue to experience price increases year-over-year with Las Vegas leading the way at 11.7 percent.
For South Carolina, CoreLogic shows HPI for the following metro areas.
- Spartanburg SC (Metro), January 2018 (Normal), January 2023 (Normal).
- Greenville-Anderson-Mauldin SC (Metro), January 2018 (Normal), January 2023 (Overvalued).
- Columbia SC (Metro), January 2018 (Undervalued), January 2023 (Undervalued).
- Florence SC (Metro), January 2018 (Undervalued), January 2023 (Normal).
- Charleston-North Charleston SC (Metro), January 2018 (Overvalued), January 2023 (Overvalued).
A few other cross-over places where shown where the market crossed into other states and there was an additional metro area along the coast of S.C. that is currently overvalued and is projected to stay that way. This index is built from industry-leading real-estate public record, servicing and securities databases with more than 40 years of repeat-sales transaction data that undergoes a strict pre-boarding assessment and normalization process.
Based on the outlook above, now is the time to sell or buy. Mortgage rates are still historically low and accessible to most potential buyers. Profit margins are high for sales right now without being ridiculous. Contact me today to get started on your future now!
And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.