Home prices up half a percent in October

Across the country, home prices rose 0.5 percent from September 2018 to October 2018.

Year-to-year, home prices went up 5.4 percent from October 2017 to October 2018, according to CoreLogic’s Home Price Index Forecast for October 2018. Home prices are expected to raise 4.8 percent from October 2018 to October 2019, and decrease 0.7 percent from October 2018 to November 2018. For the fourth month in a row, year-to-year price increases have dipped below 6 percent.

In Pennsylvania, home prices increased 3.8 percent year-to-year.

“Rising prices and interest rates have reduced home buyer activity and led to a gradual slowing in appreciation. October’s mortgage rates were the highest in seven and a half years, eroding buyer affordability. Despite higher interest rates, many renters view a home purchase as a way to build wealth through home-equity growth, especially in areas where rents are rising quickly,” said Frank Nothaft, chief economist at CoreLogic.

In the U.S.’s 100 largest metros, 41 percent of housing values are at value, 35 percent are overvalued and 16 percent are undervalued.

CoreLogic also found that most consumers currently view homeownership as a place to feel safe, a place to raise a family and also an investment. The majority of consumers also like having a place to call their own.

“Homeownership remains an important part of the American dream,” said CoreLogic CEO and President Frank Martell. “Our research found that being a homeowner makes consumers feel safe in their homes. Renters really want something to call their own. However, until affordability comes back into balance, renters will have a hard time purchasing a home.”