Friday, June 8, 2018
Housing Going Up!
CoreLogic’s latest Home Price Insights monthly report shows home prices are going up nationally. The change in home prices during April 2018 was 6.9 percent over April 2017 and the change between March and April 2018 was an increase of 1.2 percent. The forecast for May 2018 is 0.2 percent over April which then puts home prices 5.3 percent higher in April 2019 compared to April 2018.
CoreLogic’s Chief Economist Frank Nothaft has stated, “The best antidote for rising home prices is additional supply. New construction has failed to keep up with and meet new housing growth or replace existing inventory. More construction of for-sale and rental housing will alleviate housing cost pressures.”
President and CEO of CoreLogic Frank Martell states that, “Florida continues to show price resiliency after Hurricane Irma in 2017. Despite the impact of the hurricane, prices were up 5.8 percent across the state compared to a year ago. CoreLogic data projects contained gains to home prices in Florida for the remainder of 2018. However, gains could be erased if a significant storm makes landfall again.”
As for South Carolina, the change in home value for April 2018 was 5.3 percent higher than the same time last year. The projection for April 2019 is 4.7 percent higher. Month over month percent increase is showing an actual and projected 0.7 percent.
Our closest Top U.S. Metro area is still Washington, D.C. which is showing a 2.5 percent home price index change over the same time last year.
The latest market conditions indicators Metro area maps for April 2018 is showing Greenville-Anderson-Mauldin are overvalued in April and will continue to be overvalued into April 2023. Our neighboring metro area to the north Spartanburg is showing normal valuation which will continue into April 2023. Columbia metro area will continue to be undervalued as well with the coastal areas of Charleston, North Charleston, Hilton Head Island, Bluffton and Beaufort continuing to be overvalued.
My take on this study is that home prices in our area and across the U.S. will continue to rise due to a lack of inventory. Builder confidence is still not where it was before the housing crash of 2007 and rebuilding that confidence will take some time. Until that recovery happens most markets will be overvalued. It is a great time to sell! However, interest rates are rising along with the economy so if you are wanting to move up or move down or just buy for the first time, don’t wait, do it this year.
And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.