Across the country, home prices increased year-to-year in July by 6.2 percent.
Home prices increased 0.3 percent from June 2018 to July 2018, according to CoreLogic’s Home Price Insights for July 2018. The report predicts home prices will actually decrease 0.2 percent from July to August, but increase 5.1 percent from July 2018 to July 2019. In Pennsylvania, home prices grew only 3.4 percent year-to-year, and 0.1 percent month-to-month. CoreLogic predicts home prices will increase 5.8 percent from July 2018 to July 2019, and increase 0.4 percent for August 2018 in the commonwealth.
“With increased interest rates and home prices, the CoreLogic Home Price Index is rising at a slower rate than it was earlier this year,” said Dr. Frank Nothaft, chief economist for CoreLogic. “While markets in the western part of the country continue to experience rapid home-price growth, many of those metros are overvalued, and will likely experience a slowdown soon.”
In Pennsylvania, the majority of areas are priced accurately, with a few categorized as undervalued. Both State College and the Berwick-Bloomsburg area are still considered overvalued, and that trend is expected to continue.
Homeowners in higher-growth markets reported they believe their homes will be worth more in three years time, while 55 percent of owners in no or negative growth markets reported they think their homes will be worth the same or less.
“Many consumers see their homes as good investments,” said Frank Martell, president and CEO of CoreLogic. “Our consumer research indicates homeowners, especially those in high-price growth markets, are confident that by waiting to sell, they will receive a greater return on investment than they would today. In other words, sellers are largely staying put. With fewer homes on the market, price pressure will continue to rise.”