House Sale Prices Up Locally, Nationwide
YOUNGSTOWN, Ohio – House prices in the Youngstown-Warren metropolitan area in December – including distressed sales — were up 6.4% from a year earlier, an industry index reported Tuesday.
Irvine, Calif.-based CoreLogic Inc. reported that the sale price of houses on a month-over-month basis, also including distressed sales, increased by 0.4% in December compared to November.
Home prices nationally increased year-over-year by 6.6% from December 2016 to December 2017, and on a month-over-month basis by 0.5% in December compared to November, according to the CoreLogic Home Price Index.
“The number of homes for sale has remained very low,” said Frank Nothaft, chief economist for CoreLogic. “Job growth lowered the unemployment rate to 4.1% by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective home-buyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”
Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 4.3% on a year-over-year basis from December 2017 to December 2018, and on a month-over-month basis home prices are expected to decrease by 0.4% from December 2017 to January.
According to CoreLogic market condition indicators data, 35% of metropolitan areas have an overvalued housing market as of December 2017.
“Home prices continue to rise as a result of aggressive monetary policy, the economic and jobs recovery and a lack of housing stock. The largest price gains during 2017 were in five Western states: California, Idaho, Nevada, Utah and Washington,” said Frank Martell, president and CEO of CoreLogic. “As home prices and the cost of originating loans rise, affordability continues to erode, making it more challenging for both first-time buyers and moderate-income families to buy. At this point, we estimate that more than one-third of the 100 largest metropolitan areas are overvalued.”
Copyright 2023 The Business Journal, Youngstown, Ohio.