Market Overview

CoreLogic Reports April Home Prices Up, Washington State Increased 12.8 Percent

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  • All 50 States Gained Value Year Over Year in April
  • Only One-Third of the Nation's Top 50 Markets Were Considered At
    Value
  • Home Prices Projected to Increase by 5.3 Percent by April 2019

CoreLogic® (NYSE:CLGX), a leading global property
information, analytics and data-enabled solutions provider, today
released the CoreLogic Home Price Index (HPI) and HPI
Forecast for April 2018, which shows home prices rose both
year over year and month over month. Home prices increased nationally by
6.9 percent year over year from April 2017 to April 2018. On a
month-over-month basis, prices increased by 1.2 percent in April 2018 –
compared with March
2018
– according to the CoreLogic HPI. (March 2018 data was
revised. Revisions with public records data are standard, and to ensure
accuracy, CoreLogic incorporates the newly released public data to
provide updated results each month.)

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180605005521/en/

CoreLogic Home Price Change by State; April 2018. (Graphic: Business Wire)

CoreLogic Home Price Change by State; April 2018. (Graphic: Business Wire)

Looking ahead, the CoreLogic HPI Forecast indicates that the national
home-price index is projected to continue to increase by 5.3 percent on
a year-over-year basis from April 2018 to April 2019. On a
month-over-month basis, home prices are expected to rise 0.2 percent in
May 2018. The CoreLogic HPI Forecast is a projection of home prices that
is calculated using the CoreLogic HPI and other economic variables.
Values are derived from state-level forecasts by weighting indices
according to the number of owner-occupied households for each state.

"The best antidote for rising home prices is additional supply," said
Dr. Frank Nothaft, chief economist for CoreLogic. "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."

According to the CoreLogic Market Condition Indicators (MCI), an
analysis of housing values in the country's 100 largest metropolitan
areas based on housing stock found that 40 percent of metropolitan areas
have an overvalued housing market as of April 2018. The MCI analysis
categorizes home prices in individual markets as undervalued, at value
or overvalued, by comparing home prices to their long-run, sustainable
levels, which are supported by local market fundamentals (such as
disposable income). Additionally, as of April 2018, 28 percent of the
top 100 metropolitan areas were undervalued and 32 percent were at
value. When looking at only the top 50 markets based on housing stock,
52 percent were overvalued, 14 percent were undervalued and 34 percent
were at value. The MCI analysis defines an overvalued housing market as
one in which home prices are at least 10 percent higher than the
long-term, sustainable level, while an undervalued housing market is one
in which home prices are at least 10 percent below the sustainable level.

Additionally, on May 31, CoreLogic issued the 2018
Storm Surge Report
detailing the potential impact of the 2018
Hurricane season (identified as June through November) on the U.S.
mainland and territories. In the report, Florida was identified as the
most vulnerable state in the nation with 2.7 million homes at risk. $552
billion was the projected total cost to rebuild homes across the state
if the maximum number of homes were impacted by a storm. Despite the
potential impact, Florida home prices increased by 0.6 percent month
over month, and 5.8 percent year over year. Home prices in the Sunshine
State are projected to continue to increase by 0.8 percent month over
month and 7.5 percent year over year, respectively.

"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," said Frank Martell, president
and CEO of CoreLogic. "CoreLogic data projects continued gains to home
prices in Florida for the remainder of 2018. However, gains could be
erased if a significant storm makes landfall again."

Methodology

The CoreLogic HPI is built on
industry-leading public record, servicing and securities real-estate
databases and incorporates more than 40 years of repeat-sales
transactions for analyzing home price trends. Generally released on the
first Tuesday of each month with an average five-week lag, the CoreLogic
HPI is designed to provide an early indication of home price trends by
market segment and for the "Single-Family Combined" tier, representing
the most comprehensive set of properties, including all sales for
single-family attached and single-family detached properties. The
indices are fully revised with each release and employ techniques to
signal turning points sooner. The CoreLogic HPI provides measures for
multiple market segments, referred to as tiers, based on property type,
price, time between sales, loan type (conforming vs. non-conforming) and
distressed sales. Broad national coverage is available from the national
level down to ZIP Code, including non-disclosure states.

CoreLogic HPI Forecasts are
based on a two-stage, error-correction econometric model that combines
the equilibrium home price—as a function of real disposable income per
capita—with short-run fluctuations caused by market momentum,
mean-reversion, and exogenous economic shocks like changes in the
unemployment rate. With a 30-year forecast horizon, CoreLogic HPI
Forecasts project CoreLogic HPI levels for two tiers—"Single-Family
Combined" (both attached and detached) and "Single-Family Combined
Excluding Distressed Sales." As a companion to the CoreLogic HPI
Forecasts, Stress-Testing Scenarios align with Comprehensive Capital
Analysis and Review (CCAR) national scenarios to project five years of
home prices under baseline, adverse and severely adverse scenarios at
state, Core Based Statistical Area (CBSA) and ZIP Code levels. The
forecast accuracy represents a 95-percent statistical confidence
interval with a +/- 2 percent margin of error for the index.

Source: CoreLogic

The data provided are for use only by the primary recipient or the
primary recipient's publication or broadcast. This data may not be
resold, republished or licensed to any other source, including
publications and sources owned by the primary recipient's parent company
without prior written permission from CoreLogic. Any CoreLogic data used
for publication or broadcast, in whole or in part, must be sourced as
coming from CoreLogic, a data and analytics company. For use with
broadcast or web content, the citation must directly accompany first
reference of the data. If the data are illustrated with maps, charts,
graphs or other visual elements, the CoreLogic logo must be included on
screen or website. For questions, analysis or interpretation of the
data, contact Alyson Austin at newsmedia@corelogic.com
or Allyse Sanchez at corelogic@ink-co.com.
Data provided may not be modified without the prior written permission
of CoreLogic. Do not use the data in any unlawful manner. The data are
compiled from public records, contributory databases and proprietary
analytics, and its accuracy is dependent upon these sources.

About CoreLogic

CoreLogic (NYSE:CLGX) is a leading global property information,
analytics and data-enabled solutions provider. The company's combined
data from public, contributory and proprietary sources includes over 4.5
billion records spanning more than 50 years, providing detailed coverage
of property, mortgages and other encumbrances, consumer credit, tenancy,
location, hazard risk and related performance information. The markets
CoreLogic serves include real estate and mortgage finance, insurance,
capital markets, and the public sector. CoreLogic delivers value to
clients through unique data, analytics, workflow technology, advisory
and managed services. Clients rely on CoreLogic to help identify and
manage growth opportunities, improve performance and mitigate risk.
Headquartered in Irvine, Calif., CoreLogic operates in North America,
Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

CORELOGIC, the CoreLogic logo, CoreLogic HPI, CoreLogic HPI Forecast
and HPI are trademarks of CoreLogic, Inc. and/or its subsidiaries.

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