Home prices increased 3.7% year-to-year in March

Home prices jumped 3.7% year-to-year in March 2019, according to CoreLogic’s most recent Home Price Index report.

Prices were up 1% from February 2019, the study found. By March 2020, home prices are predicted to increase 4.8%, but decrease 0.3% for the April 2019 HPI report. The majority of buyers and renters (76%) in high-priced markets said they believe that the cost of buying a house in their areas are leading to higher rent costs.

“The cost of either buying or renting in expensive markets puts a significant strain on most consumers,” says Frank Martell, president and CEO of CoreLogic. “Nearly half of survey respondents—44 percent of renters—cited the cost to rent in high-priced housing markets as the No. 1 barrier to entry into homeownership. This is potentially forcing renters to wait longer to have the necessary down payment in these communities.”

Thirty-five of the 100 largest markets are considered overvalued, or when prices are at least 10% higher than the long-term, sustainable trend, according to the HPI report, 39 are considered at-value and 26 are undervalued, or at least 10 percent below the long-term, sustainable trend. In Pennsylvania, the majority of home prices continue to be at-value, or undervalued.

“The U.S. housing market continues to cool, primarily due to some of our priciest markets moving into frigid waters,” says Dr. Ralph McLaughlin, deputy chief economist at CoreLogic, “but the broader market looks more temperate as supply and demand come into balance. With mortgage rates flat and inventory picking up, we expect more buyers to take advantage of easing housing market headwinds.”