Home prices rose 7.1 percent in May compared with May 2017 and grew 1.1 percent from April 2018, according to the CoreLogic Home Price Index.
The CoreLogic HPI Forecast predicts increases in the cost of housing to continue, rising 0.3 percent in June and 5.1 percent by May 2019.
“The lean supply of homes for sale is leading to higher sales prices and fewer days on the market, and the supply shortage is more acute for entry-level homes,” CoreLogic Chief Economist Frank Nothaft said in a statement.
May’s mortgage rates averaged a seven-year high of 4.6 percent, Nothaft added, with an increasing number of homeowners keeping the low-rate loans currently held, rather than selling and buying another home that would carry a higher interest rate.
CoreLogic’s Market Condition Indicators (MCI) also found that 40 percent of the housing values in the country’s 100 largest metropolitan areas were overvalued in May based on housing stock.
