November home prices increased year-to-year, decreased month-to-month

Home prices in November 2018 rose 5.1 percent, compared to November 2017, across the country.

In Pennsylvania, home prices rose only 3.7 percent year-to year. Nationwide, month-to-month, home prices rose 0.4 percent, according to CoreLogic’s Home Price Index Forecast for November 2018. The forecast predicts that prices will go up 4.8 percent from November 2018 to November 2019. Month-to-month, home prices are expected to decrease 0.8 percent from November to December 2018.

In Pennsylvania, the majority of metros are considered undervalued or at-value. Only Centre County is still considered to have overvalued property prices.

“The rise in mortgage rates has dampened buyer demand and slowed home-price growth. Interest rates for new 30-year fixed-rate loans averaged 4.9 percent during December, the highest monthly average since February 2011. These higher rates and home prices have reduced buyer affordability. Homesellers are responding by lowering their asking price, which is reflected in the slowing growth of the CoreLogic Home Price Index,” said Frank Nothaft, chief economist at CoreLogic.

Across the country, every state except North Dakota saw home prices go up year-to-year in November 2018.

CoreLogic also polled homeowners on why they feel their home value is rising. One in five respondents said the desirable location, while 16 percent said  improved national economy, another 16 percent said improved local economy and 15 percent said renovations and additions.

“A strong economy helps homeowners feel confident about the value of their property. If recent declines in the stock market shakes consumer confidence in the national economy, we may see homeowners’ perception of home value change and a subsequent buyers’ market emerge in 2019,” Frank Martell, president and CEO of CoreLogic.