National home prices continued to rise in January, increasing 6.6 percent year-over-year, the sixth consecutive month of at least a 6 percent price increase, according to the CoreLogic Home Price Index.
National home prices continued to rise in January, increasing 6.6 percent year-over-year, the sixth consecutive month of at least a 6 percent price increase, according to the CoreLogic Home Price Index.
The rise is an increase of 0.5 percent from December 2017.
Prices show few signs of slowing anytime soon, with prices of homes also predicted to rise 4.8 percent year-over-year during 2018. A more-than 7 percent price increase is projected for home prices in California, Florida, Nevada and Oregon in 2018.
“Entry-level homes have been in particularly short supply, leading to more rapid home-price growth compared with more expensive homes,” CoreLogic Chief Economist Frank Nothaft said in a statement.
Looking at the top 50 markets based on housing stock, 48 percent were overvalued, according to CoreLogic (meaning they were priced at least 10 percent higher than the long-term, sustainable level), 14 percent were undervalued and 38 percent were at value.
“Millennials who are looking to become first-time homeowners find it particularly challenging to find an affordable home in these areas,” said CoreLogic CEO Frank Martell in a statement. The rising prices, coupled with rising mortgage rates, could keep some of the Millennial generation from purchasing a home in what would normally be prime home-buying years.
Â