August 2018 experienced annual home price growth of +5.5%; this August 2019, annual home price growth markedly slowed to +3.6%.
More pronounced is what has happened at the low-end of the market in one year. Annual home price growth at the low end of the market sped along at +8.4% in August 2018. In August 2019, low-end annual home price growth felt the brakes at +5.5%.
CoreLogic, the data source for this post, forecasts that nationally, annual home price growth will increase by +5.8% on a y/y basis from August 2019 through August 2020. On a month/month basis, CoreLogic expect s home prices to increase by 0.3f% August 2019 through August 2020.
Within CoreLogic’s 10-State Home Price Index, home price changes y/y in August 2019 look like…
- Idaho – +11.6%
- Utah – +8.0%
- New Mexico – +7.3%
- Maine – +6.9%
- Indiana – +6.5%
- Arizona – +6.2%
- Missouri – +5.5%
- Wisconsin – +55. %
- New Hampshire – +5.2%
- Tennessee +5.2%
Connecticut is the only state in which home prices have declined since 2018.
Las Vegas topped home price growth in cities during August 2019 at +4%.
In terms of market condition indicators in the top metros, CoreLogic has determined that the following metros are either “overvalued” or “normal.”
– New York-Jersey City-White Plains Overvalued
– Chicago-Naperville-Arlington Heights Normal
-Los Angeles-Long Beach-Anaheim Normal
– Houston-The Woodlands-Sugarland Overvalued
-Atlanta-Sandy Springs-Roswell Normal
-Phoenix-Mesa-Scottsdale Overvalued
– DC-Arlington-Alexandria Overvalued
-Dallas-Plano-Irving Overvalued
– Riverside-San Bernardino Normal
– Minneapolis-St. Paul-Bloomington Normal
CoreLogic also indicated that a healthy 45% of older Millennials, ages 30-38, have bought homes over the last three years. Older Millennials who have not yet purchased homes aspire to own a home in the suburbs where living is more private and more green. Younger Millennials, ages 21-29, on the other hand, lean towards urban apartments in “lively” neighborhoods. Additionally, 79% of younger Millennials are confident they will become homeowners in the future.
Also read: https://timandjulieharris.com/2019/08/29/realities-about-the-millennial-housing-market.html, https://timandjulieharris.com/2019/09/25/podcast-how-to-sell-the-unsellable-listing-part-2.html, https://timandjulieharris.com/2019/09/17/markets-that-may-see-downturn-in-possible-recession.html
