National home prices rose 6.8 percent year-over-year in June, according to the CoreLogic Home Price Index.
Prices crept up 0.7 percent from May and are expected to increase an additional 5.1 percent by June 2019, according to the CoreLogic Home Price Index Forecast.
As the cost of homes mount, millennials have cited affordability as the biggest hurdle in purchasing a home.
“One third of millennial renters reported feeling they cannot afford a down payment to buy a home,” CoreLogic CEO Frank Martell said in a statement. “With home prices rising quickly over the past few years and supplies low, first-time homebuyers face ever-growing challenges to find and buy affordable entry-level homes.”
According to the CoreLogic Market Condition Indicators, 41 percent of metropolitan areas in the country’s 100 largest metropolitan areas were found to have an overvalued housing market in June.
While the demand for homes remains high, the prices have curbed sales in markets in recent months, according to CoreLogic Chief Economist Frank Nothaft.
“Further increases in home prices and mortgage rates over the next year will likely dampen sales and home-price growth,” Nothaft said.
