Home Prices Rising at the Lowest Rate Since 2012
Home prices rose 4.7 percent in December, which is the lowest rate since 2012, according to a CoreLogic report. The chief economist for CoreLogic said higher mortgage rates slowed home sales and price growth during the first half of the year.
For 2019, he predicts an average annual price growth of 3.4 percent.
When looking at the top 50 markets based on housing stock, 40 percent were overvalued, 18 percent were undervalued and 42 percent were at value.
In terms of renter interest in home ownership, the biggest reason was to fulfill a dream and raise a family. People in this group tended to be younger and were more likely to have kids. Those who were least interested in homeownership tended to be older and said they don’t want the burden of a long-term financial commitment and are less likely to have kids.
CoreLogic’s CEO says the slowdown in the rate of home price appreciation reflects the impact of inventory shortages and growing affordability issues in many markets. But, 2019 could see an increase in home buyers if home-price growth continues to moderate, interest rates remain stable and household incomes rise.