U.S. home prices rose 3.5% in October, compared with the same month a year ago, according to data from CoreLogic’s Home Price Insights monthly report released Tuesday. The data includes sales of distressed properties.
Home prices rose 0.5% month over month in October. Year over year, the index has increased every month since February 2012 and is up 62.5% since bottoming out in March 2011.
CoreLogic forecasts housing prices to rise by 0.2% month over month in November and by 5.4% year over year in October 2020.
As of October 2019, home prices are now about 9.4% higher than they were at the April 2006 pre-crash peak. Adjusted for inflation, however, home prices remain about 11.4% below the peak.
CEO Frank Martell noted:
Nationally, over the past year, home prices are up 3.5% with the rate of growth accelerating from September into October. We expect home prices to rise at least another 5% over the next 12 months. Interestingly, this persistent increase in home prices isn’t deterring older millennials. In fact, 25% of those surveyed anticipate purchasing a home over the next six to eight months.
CoreLogic’s chief economist, Frank Nothaft, added:
Local home-price growth can deviate widely from the change in our U.S. index. While we saw prices up 3.5% nationally last year, home prices also declined in 22 metropolitan areas. Price softness occurred in some high-cost urban areas and in metros with weak employment growth during the past year.
Including distressed sales, home prices rose the most year over year in Idaho (11.9%), Maine (7.5%) and Indiana (7.1%). Year over year, home prices rose in every state.
Through October, housing stock in 35% of the top 100 metropolitan areas was overvalued, 27% was undervalued and 38% was at value. In just the top 50 markets based on housing stock, 40% was overvalued, 20% was undervalued and 40% was at value. CoreLogic defines an overvalued housing market as one in which home prices are at least 10% higher than the long-term, sustainable level, while an undervalued housing market is one in which home prices are at least 10% below the sustainable level.
Among U.S. metro areas Denver posted the largest year-over-year index change, up 3.4% in October. Washington, D.C., prices rose 3.3%, and both Miami and Las Vegas prices rose 3.0%. Los Angeles prices rose 2.5% to round out the top five.
The full October home price report is available at the CoreLogic website.
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.