Home Values up in All 50 States
Home values surged in April across the country, with values increasing in all 50 states, while construction and housing supply issues continue to afflict the industry, reports HousingWire. Prices were up 6.9 percent year over year in April, an improvement of 1.2 percent from March, according to the latest CoreLogic Home Price Index data.
New supply an “antidote” to rising home prices
While increasing values are a boon to homeowners, the continued increase of prices is not good news for prospective home buyers. “New construction has failed to keep up with and meet new housing growth or replace existing inventory,” said Frank Nothaft, chief economist for CoreLogic. “More construction of for-sale and rental housing will alleviate housing cost pressures,” he said, adding, “The best antidote for rising home prices is additional supply.”
More growth forecast for next year
While home prices are already almost seven percent above April 2017 levels, they are forecast to climb even higher next year. The CoreLogic HPI Forecast reported projects prices to climb 5.3 percent above their April 2018 level by April of 2019. The forecast is reportedly an economic model that projects calculations based on a state-level forecast, which takes into account the number of owner-occupied homes in each state.
Of particular note, the report noted that Florida home prices have not suffered too greatly, even in the wake of last year’s hurricane. “Florida continues to show price resiliency after Hurricane Irma in 2017,” noted Frank Martell, president and CEO of CoreLogic, saying prices in Florida were up 5.8 percent year over year. “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,” he cautioned.