Home prices on the rise with predictions for more of the same
While homebuyers may not be as pleased these days, sellers have smiles on their faces. The news (statistics always lag behind a bit) is that national home prices notched a stronger annual gain in April than in March, marking the first time in over a year that prices have accelerated from one month to the next.
That data comes from a recent report from CoreLogic, a national real estate information services provider. Prices were up 3.6% for the year and 1% for the month in March.
Annual price gains in CoreLogic’s national index have been flat or declined every month since April 2018, but the company believes that “the pickup in sales between March and April” helped soften some of the slower growth in prices.
Sales as reported by the National Association of Realtors were slower in April than in March: they ran at a 5.19 million seasonally adjusted annual pace in April, down from a 5.21 million pace in March. But CoreLogic expects home prices to keep going up, and forecasts a 4.7% rise over the coming 12 months. The company also analyzes housing stock in major metro areas for their values compared to their “long-term, sustainable level.” By these measurements, markets including Las Vegas were overvalued, while (believe it or not) San Francisco was undervalued.
The company’s chief economist points out that price growth nationally is strongest for lower-priced homes, keeping buying conditions challenging for first-timers.
Rates Currently Trending: Neutral
Mortgage rates are trending sideways so far today. Last week the MBS market improved by +13 bps. This caused rates to remain very low. Rates experienced relatively low volatility.