Home prices were up in August, increasing 5.5 percent year-to-year.
Month-to-month, home prices only saw a 0.1 percent rise from July. According to CoreLogic Home Price Insights for August 2018, home prices are expected to decrease for September data by 0.4 percent. The report predicts that the housing market will see a 4.7 percent increase from August 2018 to August 2019.
“The rise in mortgage rates this summer to their highest level in seven years has made it more difficult for potential buyers to afford a home,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The slackening in demand is reflected in the slowing of national appreciation, as illustrated in the CoreLogic Home Price Index. National appreciation in August was the slowest in nearly two years, and we expect appreciation to slow further in the coming year.”
In Pennsylvania, home prices were only up 3.6 percent year-to-year in August, but CoreLogic predicts they will surpass the national average for year-to-year rises in August 2019, hitting 5.6 percent. Month-to-month, prices in the commonwealth actually decreased 0.2 percent. It is anticipated they will go up 0.2 percent for September 2018. Across the state, metros were either priced appropriately, or undervalued for the most part. Only State College and the Bloomsburg-Berwick area continue to be overvalued.
“In some markets, homebuyers and sellers are remaining cautious and taking a pause as price appreciation continues to rise,” said Frank Martell, president and CEO of CoreLogic. “By waiting to sell, homeowners believe they will get the greatest return on their investment; the more money they have for a down payment, the easier the purchase payments will be for their next home.”