Home prices rise again as inventory hits new 30-year low

Unsold inventory hit a 30-year low in June.

Thus, yet again, home prices rose year-over-year, and month-over-month in June, according to CoreLogic’s Home Price Insights June 2017 report. Across the country, home prices increased 6.7 year-to-year in June 2017, and 1.1 percent from May 2017. The report predicts that home prices will rise 5.2 percent by June 2018, and increase 0.6 percent for July 2017’s report. The report found that the lower-priced tier of homes increased the most, at 9.2 percent, followed by low-to-middle priced at 8.2 percent, middle-to-moderate priced at 7 percent, and 5.5 percent for the higher-priced homes.

“The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory. As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years,” said CoreLogic Chief Economist Frank Nothaft in a release.

In Pennsylvania, home price increases were below the national average for year-to-year, rising only 2.5 percent, but identical to month-to-month increases, at 0.6 percent. The report predicts that home prices will go up 4.6 percent from June 2017 to June 2018 in the commonwealth.

“Home prices are marching ever higher- up almost 50 percent since the trough in march 2011. With no end to the escalation in sight, affordability is rapidly deterioration nationally, and especially in some key markets. While the low mortgage rates are keeping the market affordable from a monthly payment perspective, affordability will likely become a much bigger challenge in the years ahead until and when the industry resolves the housing supply challenge,” said CoreLogic President and CEO Frank Martell.

In May, home prices rose 6.6 percent year-to-year, and 1.2 percent month-to-month.