CoreLogic Reports Fourth Consecutive Month with More Than 6 Percent Year-Over-Year Home Price Growth in November

  • Washington, Nevada, Utah and Idaho Posted 12-Month Price Gains of 10 Percent or More in November
  • Lack of Affordable Housing Stock Keeps Home Price Index High in Many Markets
  • Home Prices Projected to Increase by 4.2 Percent by November 2018

Irvine, CA – January 2, 2018 (BUSINESS WIRE) CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its CoreLogic Home Price Index (HPI™) and HPI Forecast™ for November 2017, which shows home prices are up both year over year and month over month. Home prices nationally increased year over year by 7 percent from November 2016 to November 2017, and on a month-over-month basis home prices increased by 1 percent in November 2017 compared with October 2017,* according to the CoreLogic HPI.

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Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 4.2 percent on a year-over-year basis from November 2017 to November 2018, and on a month-over-month basis home prices are expected to decrease by 0.4 percent from November 2017 to December 2017. The CoreLogic HPI Forecast is a projection of home prices 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.

“Rising home prices are good news for home sellers, but add to the challenges that home buyers face,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Growing numbers of first-time buyers find limited for-sale inventory for lower-priced homes, leading to both higher rates of price growth for ‘starter’ homes and further erosion of affordability.”

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According to CoreLogic Market Condition Indicators (MCI) data, an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, 37 percent of metropolitan areas have an overvalued housing stock as of November 2017. 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. Also, as of November, 36 percent of the top 100 metropolitan areas were undervalued and 26 percent were at value (this percent share is based on 99 markets for this report since data for Honolulu is currently unavailable). When looking at only the top 50 markets based on housing stock, 50 percent were overvalued, 14 percent were undervalued and 36 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.

“Without a significant surge in new building and affordable housing stock, the relatively high level of growth in home prices of recent years will continue in most markets,” said Frank Martell, president and CEO of CoreLogic. “Although policymakers are increasingly looking for ways to address the lack of affordable housing, much more needs to be done soon to see a significant improvement over the medium term.”

*October 2017 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.

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 indexes 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 +/- 2.0 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 Lori Guyton at lguyton@cvic.com or Bill Campbell at bill@campbelllewis.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.

Contacts

CoreLogic
For real estate industry and trade media:
Bill Campbell
(212) 995-8057
bill@campbelllewis.com

or

For general news media:
Lori Guyton
(901) 277-6066
lguyton@cvic.com

Cities Where The Majority of Americans Can’t Afford a Home

In many large cities, more than 50% of households cannot afford a home

Los Angeles, CA – Jan. 2, 2018 (PRNewswire) Six cities on the U.S. coasts have a 70 percent or higher percentage of households that can’t afford a home, a new study found.

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Personal finance website GOBankingRates used the median home listing price in the 100 largest cities to calculate typical monthly mortgage payments. Using the rule that no more than 30 percent of income should go toward housing, GOBankingRates calculated the income needed to afford a mortgage. Researchers then compared this income to the number of households with income equal to or greater than that amount.

For full study results and more details on methodology, visit: Places Where 50% of Americans Can’t Afford a Home

Top Five Cities With the Highest Percentage of Households That Can’t Afford a Home

1. San Francisco, CA

Median listing price: $1,199,000
Percentage of households that can’t afford a home: 76.7 percent

2. Boston, MA

Median listing price: $725,000
Percentage of households that can’t afford a home: 75.7 percent

3. Miami, FL

Median listing price: $450,000
Percentage of households that can’t afford a home: 74.3 percent

4. Long Beach, CA

Median listing price: $549,900
Percentage of households that can’t afford a home: 73.5 percent

5. Los Angeles, CA

Median listing price: $749,000
Percentage of households that can’t afford a home: 72.9 percent

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Additional Study Insights

  • Perhaps unsurprising due to its high real estate prices, six of the top 10 cities with the highest percentage of households that can’t afford homes are in California.
  • Some surprising cities made the final list. In New Orleans, the median home price is $300,000 but 65.4 percent of households can’t afford a home because wages are lower.
  • Median home prices in Oakland, Calif., are half as expensive as they are across the bay in San Francisco.

About GOBankingRates

GOBankingRates.com is a personal finance news and features website dedicated to helping visitors live a richer life. From tips on saving money, to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, MONEY, AOL Finance, CBS MoneyWatch, Business Insider and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us here.

Contact

Kim Dahlgren, Media Relations
GOBankingRates.com
kimd@consumertrack.com
(310) 297-9233 x138

All U.S. Homes Worth Cumulative $31.8 Trillion

– Renters paid a record high $485.6 billion in 2017, a $4.9 billion increase from 2016

– The entire U.S. housing stock gained $2 trillion in value over the past year.

– The value of all U.S. homes grew 6.5 percent in 2017, the fastest pace in four years.

– Los Angeles, New York and San Francisco are the most valuable housing markets, each worth more than $1 trillion.

Seattle, WA – Dec. 28, 2017 (PRNewswire) The total value of all homes in the United States is now $31.8 trillion after gaining $2 trillion in 2017.

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The cumulative value of the U.S. housing market grew at its fastest annual pace – 6.5 percent – in four years. The value of all U.S. homes rose 8 percent annually in the early stages of the housing recovery in 2013.

For many households, a home is the single largest source of wealth, but the collapse of the housing market and the ensuing Great Recession demonstrated the importance of housing to the U.S. economy as well. The housing market has gained $9 trillion since the lowest levels of the recession.

The value gained in 2017 alone is equivalent to more than the valuation of two companies the size of Apple. Over the past year, the U.S. housing market has gained $1.95 trillion, while Apple recently hit a market value of $900 billion, the first U.S. company to do so(i).

The Los Angeles and New York markets each account for more than 8 percent of the value of all U.S. housing, and are worth $2.7 trillion and $2.6 trillion, respectively. San Francisco is the only other housing market worth more than $1 trillion.

Among the 35 largest U.S. markets, Columbus grew the most in 2017, gaining 15.1 percent. San Jose, Dallas, Seattle, Tampa, Las Vegas and Charlotte, N.C. also grew by 10 percent or more over the past year.

This was a record year for home values as the national housing stock reached record heights in 2017,” said Zillow® Senior Economist Aaron Terrazas. “Strong demand from buyers and the ongoing inventory shortage keep pushing values higher, especially in some of the nation’s booming coastal markets. Renters spent more than ever on rent this year, but the amount they spent grew at the slowest pace in recent years as more renters transitioned into homeownership and new rental supply slowed rent growth across the country. Despite recent changes to federal tax laws that have historically made homeownership financially attractive, the long-term dynamics pushing up home values and rents are unlikely to change significantly in 2018.”

Renters spent a record $485.6 billion in 2017, an increase of $4.9 billion from 2016. Renters in New York and Los Angeles spent the most on rent over the past year. These markets are also home to the largest number of renter households.

San Francisco rents are so high that renters collectively paid $616 million more in rent than Chicago renters did, despite there being 467,000 fewer renters in San Francisco than in Chicago.

Las Vegas, Minneapolis and Charlotte, N.C. had the largest gains in the total amount of rent paid, with each increasing by more than 7 percent since 2016.

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Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark of Zillow, Inc.

Trulia: 2018 May See Cooling Of Pricey Coastal Markets And Continued Rise In Homeownership Rate Despite For-Sale Inventory Shortage

Trulia Identifies 10 Housing Markets to Watch: Grand Rapids, Mich., Nashville, Tenn., Raleigh, N.C., El Paso, Texas, San Antonio, Texas, Fort Worth, Texas, Austin, Texas, Columbus, Ohio, Madison, Wis. and Cincinnati, Ohio

San Francisco – Dec. 7, 2017 (PRNewswire) Trulia®, a home and neighborhood resource for homebuyers and renters, today released its 2018 Housing Outlook Report. Heading into the new year, Trulia Chief Economist Ralph McLaughlin shares his predictions for the housing market in 2018:

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Tax Plans May Help Cool Expensive Coastal Markets: As Washington nears a tax overhaul that shifts burdens for homeowners, the luxury market and housing markets in expensive, high-tax states in the Pacific West and Northeast might see cooling. This could include slowing home price growth, new construction and existing home sales.

Homeownership Rate Will Continue to Climb: 2017 saw the first significant increase in the homeownership rate in over 10 years. Meanwhile, the number of owner-occupied households grew faster than renter households for three consecutive quarters—a first in 12 years as the number of renter households fell for two consecutive quarters. As Gen Xers transition back from renting to owning and more millennials become homeowners, the homeownership rate will continue to increase as it has trended in 2017, albeit slowly.

Trulia’s Top 10 Housing Markets Poised for Growth
Trulia identified 10 housing markets to watch in 2018 among the 100 biggest markets, based on five key metrics: strong job growth over the past year, low vacancy rates, high starter-home affordability, more inbound than outbound home searches on Trulia and a large share of people under age 35 in the population as a measure of prospective first-time homebuyers.

1. Grand Rapids, Mich.
2. Nashville, Tenn.
3. Raleigh, N.C.
4. El Paso, Texas
5. San Antonio, Texas
6. Fort Worth, Texas
7. Austin, Texas
8. Columbus, Ohio
9. Madison, Wis.
10. Cincinnati, Ohio

Key Findings from Trulia’s American Dream Survey
The report also includes findings from Trulia’s annual survey of American sentiment on homeownership in the year ahead, which was conducted online by Harris Poll of more than 2,000 Americans age 18 and older.

Rising Home Prices Becoming Bigger Obstacle, Many Plan to Buy After 2020
One in four Americans (25%) believe buying a home in 2018 will be better than in 2017—the same as those who say it will be worse (also 25% of Americans). One possible reason for the split sentiment: 40% of American renters who desire to buy a home say rising home prices is their biggest obstacle to homeownership—the highest level reported since 2013 when only 22% said the same. Perhaps as a result, only 10% of Americans plan to buy a home as their primary residence in the next 12 months while 41% plan to wait at least two years.

Rising Optimism for Home Selling Unlikely to Ease Tight Inventory Immediately
Nearly one in three Americans (31%) think 2018 will be a better year for selling a home than 2017, versus 14% who think it will be worse—a 17-percentage point differential, which is the highest differential since 2014 (20%). This spells good news for the current inventory crunch, but relief may not come for a few years as only 6% of homeowners plan to sell their home in 2018.

73% of Millennials Aspire to be Homeowners, But Saving Money Remains Key Obstacle
Today, 73% of Americans aged 18-34 say homeownership is part of their personal American Dream; however, this majority is below 2015’s level of 80% expressing this same sentiment. Yet for many millennials, their homebuying plans aren’t happening soon: 65% who plan to buy a home one day said they don’t plan to do so until at least 2020. Why are they waiting? Perhaps lack of funds—saving for a down payment is one of the greatest obstacles to homeownership (66%), along with rising home prices (47%) and qualifying for a mortgage (37%) for millennial renters who want to buy a home.

Natural Disasters Causing Homeowners, Homebuyers to Rethink Where They Live
After 2017’s array of floods, hurricanes, wildfires, and other natural disasters, 39% of Americans say they are more concerned about the potential threat of natural disasters affecting their homes, with a higher proportion of those in the hurricane- and flood-ravaged South expressing concerns (43%). Only 5% of Americans are less concerned about this potential threat. More tellingly, a majority of Americans said the potential for the aforementioned natural disasters – floods (72%), hurricanes (61%) and wildfires (58%) – would influence their home searches if they were looking to purchase a home.

Quotes from Trulia’s Chief Economist Ralph McLaughlin:

“Homeownership will continue its comeback story in 2018 as Gen Xers who were hard-hit during the Great Recession become homeowners again, and as more millennials buy homes for the first time. But homebuyers won’t be without challenges as they’ll still face low inventory, slow wage growth and expensive starter homes. For millennials, they have the added hurdle of saving enough money to make a down payment and make competitive offers amid rising home prices.”

“Amid 2017’s slew of natural disasters, future homebuyers may rethink where they live. But the desire to become a homeowner remains strong enough so these concerns are only likely to deter demand in the most vulnerable of locales.”

Survey Methodology
This survey was conducted online within the United States between November 9th and 13th, 2017 among 2,188 adults (aged 18 and older) by Harris Poll on behalf of Trulia. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology for this survey or previous surveys, including weighting variables and subgroup sample sizes, please contact pr@trulia.com.

About Trulia
Trulia®is a vibrant home shopping marketplace, focused on giving homebuyers, sellers, and renters the information they need to make better decisions. On mobile and the Web, Trulia provides house hunters with insights and unique information about properties, neighborhoods, and real estate agents. Additionally, Trulia offers data and information about schools, crimes, commute times, and the real estate market.

Launched in 2005, Trulia is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG).

Trulia is a registered trademark of Trulia, LLC.

MEDIA CONTACT:

Debbie Baratz
pr@trulia.com
(415) 757-2299