National home prices climbed for the seventh consecutive month in February, increasing 1 percent since January and 6.7 percent compared with February 2017, according to the CoreLogic Home Price Index.
Western states have seen some of the most significant price increases, according to CoreLogic Chief Economist Dr. Frank Nothaft, with home prices in Idaho, Nevada, Utah and Washington all increasing by more than 11 percent since last year.
“With the recent rise in mortgage rates, affordability has fallen sharply in these states,” Nothaft said in a statement, adding that he expects home-price growth to slow in western states over the next year.
According to CoreLogic Market Condition Indicators, 34 percent of metropolitan areas had an overvalued housing market in February, and 48 percent of the 50 largest metropolitan areas were overvalued.
CoreLogic is forecasting a 4.7 percent increase to home prices by February 2019. California is projected to have the biggest increase over the next year, rising 10.3 percent.
