According to CoreLogic’s predictions, the price of an average American home is expected to rise another 5.3 percent by April 2019 and to have climbed 0.2 percent this May.

This morning, CoreLogic released its Home Price Index (HPI) and HPI Forecast data for April 2018, showing how home prices have increased year-over-year, and more is it come.

Across the U.S., home prices rose by a total of 6.9 percent when compared to April 2017, increasing another 1.2 percent when compared to last month.

“The best antidote for rising home prices is additional supply,” said Dr. Frank Nothaft, CoreLogic’s chief economist, in a statement. “New construction has failed to keep up with and meet new housing growth or replace existing inventory. More construction of for-sale and rental housing will alleviate housing cost pressures.”

Interestingly, lower priced-homes saw a much greater gain year-over-year than higher-priced ones: homes in CoreLogic’s lowest price tier (75 percent or less the value of the national median home) saw a staggering 9.3 percent price increase year-over-year, versus a 5.7 percent price increase year-over-year for the highest-cost bracket of homes (125 percent the value of the national median home).

According to CoreLogic’s predictions, the price of an average American home is expected to rise another 5.3 percent by April 2019 and to have climbed 0.2 percent this May.

CoreLogic April 2018 price tiers chart

Chart showing the year-over-year appreciation of homes in different price tiers | Credit: CoreLogic HPI

This type of market, in which home inventory is low and houses will sell well above their listings price, is consistent across many places in the country. As per CoreLogic’s analysis, 40 percent of the markets in metropolitan cities across the U.S. are overvalued.

While all 50 states recorded year-over-year price increases, Washington, Nevada and Utah saw some of the largest jumps in 12-month home price index changes this year. The Seattle area was hit particularly hard — the average home price jumped 12.8 percent between last April and now.

Even as CoreLogic released a report showing that certain southern states were hit particularly hard by last year’s storm season, the upward trend for homes is unlikely to stop soon.

“Florida continues to show price resiliency after Hurricane Irma in 2017. Despite the impact of the hurricane, prices were up 5.8 percent across the state compared to a year ago,” said Frank Martell, president and CEO of CoreLogic, in a statement. “CoreLogic data projects continued gains to home prices in Florida for the remainder of 2018. However, gains could be erased if a significant storm makes landfall again.”

About the report

The CoreLogic HPI is built on industry-leading public record, servicing and securities real-estate databases and incorporates more than 40 years of repeat-sales transactions for analyzing home price trends.

Generally released on the first Tuesday of each month with an average five-week lag, the CoreLogic HPI is designed to provide an early indication of home price trends by market segment and for the “Single-Family Combined” tier representing the most comprehensive set of properties, including all sales for single-family attached and single-family detached properties.

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×