High-Cost Markets Are Most To Slow
Home prices could continue their latest trend of a downward spiral. According to new forecasts, once final October numbers come in, they’ll likely show a drop from September to October. While home prices are predicted to drop a possible 0.6% from September to October, home prices jumped slightly from August to September, rising 0.4%.
Though prices aren’t yet declining (at least not at the national level) their growth has slowed 0.5% since 2017. In fact, according to the most recent Case-Shiller report, price gains have now hit a 20-month low. Price growth is particularly down in high-cost markets like Hawaii and California.
Hawaii, California and Massachusetts had median sales prices above $400,000 this summer, while annual home price growth slowed steadily between June and September in these three states. When comparing September 2018 with September 2017, annual price appreciation slowed more in these states than in the U.S overall. Nationally, annual price growth slowed 0% points.
Room for improvement
There’s still room to improve, too. CoreLogic’s Market Condition Indicators show that homes are being overvalued in 38% of major metro areas. Just under half are at value.
When looking at only the top 50 markets based on housing stock, 46% were overvalued, 14% were undervalued, and 40% were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent above the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10% below the sustainable level.
A mere 19 of the nation’s top 100 metros were deemed as undervalued.
Get today’s mortgage rates
Looking to take advantage of slowing home prices? Then shop around and see what mortgage rates you qualify for today. But make sure you talk to Steve Gilbert at Seattle Mortgage Brokers today.
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