Market Overview

CoreLogic Reports November Home Prices Increased by 5.1 Percent Year Over Year

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  • Home-price growth projected to slow to 4.8 percent by November 2019
  • November marked the eighth consecutive month of slowing annual HPI
    growth
  • Homeowner perception of home value may set up 2019 as a buyers'
    market
  • North Dakota was the only state to show a year-over-year decline in
    prices this month, while Idaho and Nevada showed double-digit growth

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 November 2018, which shows home prices rose
both year over year and month over month. Home prices increased
nationally by 5.1 percent year over year from November 2017. On a
month-over-month basis, prices increased by 0.4 percent in November
2018. (October
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/20190102005113/en/

CoreLogic National Home Price Change; November 2018. (Graphic: Business Wire)

CoreLogic National Home Price Change; November 2018. (Graphic: Business Wire)

Looking ahead, the CoreLogic HPI Forecast indicates home prices will
increase by 4.8 percent on a year-over-year basis from November 2018 to
November 2019. On a month-over-month basis, home prices are expected to
decrease by 0.8 percent from November to December 2018. The CoreLogic
HPI Forecast is a projection of home prices 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 rise in mortgage rates has dampened buyer demand and slowed
home-price growth," said Dr. Frank Nothaft, chief economist for
CoreLogic. "Interest rates for new 30-year fixed-rate loans averaged 4.9
percent during November, the highest monthly average since February
2011. These higher rates and home prices have reduced buyer
affordability. Home sellers are responding by lowering their asking
price, which is reflected in the slowing growth of the CoreLogic Home
Price Index."

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, 35 percent of metropolitan areas have an
overvalued housing market as of November 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 November 2018, 27 percent of the
top 100 metropolitan areas were undervalued, and 38 percent were at
value.

When looking at only the top 50 markets based on housing stock, 44
percent were overvalued, 18 percent were undervalued and 38 percent were
at value. The MCI analysis defines an overvalued housing market as one
in which home prices are at least 10 percent above the long-term,
sustainable level. An undervalued housing market is one in which home
prices are at least 10 percent below the sustainable level.

In 2018, CoreLogic together with RTi Research of Norwalk, Connecticut,
conducted an extensive survey measuring consumer-housing sentiment,
combining consumer and property insights. The study assessed attitudes
toward homeownership and the driving force behind the decision to buy or
rent a home. When homeowners were asked why they felt their home was
increasing in value, they cited desirable location and improving local
and national economies. As the country enters a new year, the state of
these economic conditions will continue to impact attitudes toward
homeownership and perceived property values.

"A strong economy helps homeowners feel confident about the value of
their property," said Frank Martell, president and CEO of CoreLogic. "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."

The next CoreLogic HPI press release, featuring December 2018 data, will
be issued on Tuesday, February 5, 2019 at 8:00 a.m. ET.

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.

About The 2018 CoreLogic Consumer Housing Sentiment Study

Nationwide survey of 3001 renters and homeowners conducted in first
quarter of 2018 by CoreLogic together with RTi Research. The survey has
a sampling error of +/- 1.8 percent at the total respondent level with a
95 percent confidence level.

About RTi Research

RTi Research is an innovative, global market research and brand strategy
consultancy headquartered in Norwalk, CT. Founded in 1979, RTi has been
consistently recognized by the American Marketing Association as one of
the top 50 U.S. insights companies. The company serves a broad base of
leading firms in Financial Services, Consumer Goods, and Pharmaceuticals
as well as partnering with leading academic centers of excellence.

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 and CoreLogic HPI
Forecast are trademarks of CoreLogic, Inc. and/or its subsidiaries. All
other trademarks are the property of their respective owners.

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