BREAKING NEWS

High Mortgages Frustrate Buyers

RNR Real Estate Briefs – HOU, AUS, DAL & more

East River Adding Art to the Mix

Major Warehouse Lease Signed

Unilev Taps Stream Realty

58 Cities Drop Off Million-Dollar Home List

REALTY NEWS REPORT - Logo

Banner
  • Home
  • Categories
    • Breaking News
    • Houston
    • Residential
    • New Development
    • People
    • Office
    • Multi-Family
    • Capital Markets
    • Texas
    • Retail
    • Hospitality
    • Industrial
    • Land
    • Lease Brief
    • Medical
    • National
    • Realty News Report
    • Trades
    • Uncategorized
  • Archive
  • Subscribe
  • The Ralph Bivins Project
  • About
  • Contact
FacebookLinkedinYoutubeEmail
REALTY NEWS REPORT - Logo

The Slowdown: Home Price Appreciation Lowest Since 2012, But Could Pick Up Again

by Realty News ReportMarch 12, 2019
Share0
Frank Nothaft, chief economist of CoreLogic.

HOUSTON – (By Dale King, Realty News Report) – The days of low mortgage rates may be coming to an end, and with them, decent increases in home prices and respectable numbers of houses sold, says a study by CoreLogic, a global property information and analytics firm.

But this doesn’t mean the future will be pockmarked with gloom and doom. In fact, researchers at the Irvine, Calif.-based firm say if job levels and salaries remain strong, the cost of buying a house may rise more than anticipated, and mortgage rates may slide back a tad.

“The slowing growth in home prices was inevitable in many respects as buyers pull back in the face of higher borrowing and ownership costs,” said Frank Martell, president and CEO of CoreLogic. “As we head into 2019, we can expect continued strong employment growth and rising incomes which could support a reacceleration in home-price appreciation later this year.”

Dr. Frank Nothaft, chief economist for CoreLogic, noted mortgage rates today are lower than they were a year ago. “With interest rates at this level, we expect a solid home-buying season this spring,” he said. “The spike in mortgage interest rates last fall chilled buyer activity and led to a slowdown in home sales and price growth.”

As stated by Liza McIntosh, senior strategist, “This slowdown was inevitable, but CoreLogic economists are still predicting a strong home-buying season this spring.”

Looking ahead, the CoreLogic Home Price Index (HPI) foresees the 2019 annual average home price will increase 3.4% above the 2018 national annual average of 4.4%. On a month-over-month basis, prices nationally increased by only 0.1% in January 2019, the report says.

The numbers for the State of Texas and some of its larger metros vary little from the figures reported for the USA. While the nation saw home prices rise an average of 4.4% during 2018, Texas racked up a 4.1% tally. The HPI rose 0.1% nationally last year; -0.1% in Texas.

The sizeable price hikes came in North Texas, says the report. The Fort Worth-Arlington metro division topped the report’s list with prices increasing 5.9% last year. Next came the Dallas-Plano-Irving metro area with a 4.5% jump, then San Antonio-New Braunfels metropolitan statistical area at 4.43%; Houston-The Woodlands-Sugar Land MSA at 3.99% and the Austin-Round Rock area at 3.75%.

The CoreLogic report came up with a couple of additional bits of information:

  • The 12-month home-price growth rate was slowest since August 2012.

  • Since peaking at 6.6% last April, annual home price gains have declined or held steady each month.

The CoreLogic HPI Forecast is a projection of home prices determined by using CoreLogic’s Home Price Index along with other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

The CoreLogic Market Condition Indicators (MCI), an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, showed that 35% of metropolitan areas had an overvalued housing market as of January 2019. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued, by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals (such as disposable income).

In addition, as of January 2019, 27% of the top 100 metropolitan areas were undervalued, and 38% were at value.

When looking at only the top 50 markets based on housing stock, 40% were overvalued, 18% were undervalued and 42% were at value in January 2019. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10% above the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10% below the sustainable level.

March 12, 2019 Realty News Report Copyright 2019

 

Share0
previous post
Molto Properties Enters Houston With NW Spec Distribution Center
next post
Austin Student Housing Tower Sells for $100 Million

Related posts

High Mortgages Frustrate Buyers

Realty News ReportMarch 27, 2023

RNR Real Estate Briefs – HOU, AUS, DAL & more

Realty News ReportMarch 25, 2023

East River Adding Art to the Mix

Realty News ReportMarch 23, 2023

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Search News

Partners Ad
CBRE Ad
Arch Con Corporation Ad
Hines Ad
Avera Ad
Ziegler Cooper Ad
Lee & Associates Ad
2021 Realty News Report Ad
Property Logos
RNR - Lincoln Property Company
Hal Gordon - Property Tax Lawyer
Hunington Ad
Evergreen Commercial Realty
STREAM Ad
Hunington Ad

Let's Connect

logo
About US
Author Ralph Bivins is editor of Realty News Report, which covers regional and national news. Bivins recently received the Gold Award for Best Column in the National Association of Real Estate Editors Journalism Competition. Contact us
Follow us
FacebookLinkedinYoutubeEmail
@2022 All Right Reserved. Powered by CGS Digital Marketing
REALTY NEWS REPORT - Logo
FacebookLinkedinYoutubeEmail
  • Home
  • Categories
    • Breaking News
    • Houston
    • Residential
    • New Development
    • People
    • Office
    • Multi-Family
    • Capital Markets
    • Texas
    • Retail
    • Hospitality
    • Industrial
    • Land
    • Lease Brief
    • Medical
    • National
    • Realty News Report
    • Trades
    • Uncategorized
  • Archive
  • Subscribe
  • The Ralph Bivins Project
  • About
  • Contact