CoreLogic’s latest Home Price Insights report has been released for April 2018 and the biggest news is that CoreLogic reports that half of the 50 largest metro housing markets in the United States are “overvalued.” That’s a word that may have many homebuyers running for the hills shouting about bubbles and crashes but it’s far from that simple.
Click here to read the full press release from CoreLogic
So what does “overvalued” mean?
It does not mean the same thing as a bubble. Though it is obviously true that in order for a bubble to exist some commodity has to be overvalued it does not necessarily correlate that an overvalued commodity is, necessarily, a sign of a bubble.
Bubbles always occur because of some kind of rampant fraud when it
Year-Over-Year California shows growth in home prices that is stronger than 90% of the country while still staying relatively far below its peak value.
When you take a look at the numbers in CoreLogic’s January Housing Price Index Report you can see that California is on the strong side of two very telling metrics when compared to the numbers nationwide.
Continued Growth in CA Housing Prices is Likely, at Slower Pace
The year-over-year change from January 2014 was 5.7% for the National index. California was on the stronger side of that, posting a 7.3% year-over-year change. Even that can be considered strong growth. That number will likely continue to decline over the next year.
The National HPI is currently 12.7% less than its all-time peak
CoreLogic’s current HPI report for July 2014, released earlier this month, represents the 29th consecutive month that the Housing Price Index has shown positive year-over-year changes. The year-over-year increases have only recently dropped in to the single digits. Previously the year-over-year increases were consistently in the double-digits. Price increases like that cannot go on unabated before another bubble is reached. CoreLogic’s May 2014 HPI report showed a YoY increase of 8.8% and in June it fell to a 7.5% increase. The latest report for July stayed steady at 7.4%.
The Market is Responding to Consumer Buying Power
This is a good sign as far as I’m concerned. Double-digit price increases are nice but they can’t go on forever. What seems
A whole slew of good indicators in two CoreLogic reports this past month as well as another key economic indicator. Whether the numbers were up or down the reports represent a return to a previous state of prosperity without all the speculation (hopefully).
The Numbers are In
The March 2014 CoreLogic Foreclosure Report indicates that 48,000 foreclosures were completed in March, this number is down 10% from a year before and has been slowly falling for several years. From 2000-2006 the average number of completed foreclosures was 21,000 per month.
Additionally, CoreLogic’s March 2014 Housing Price Index Report shows that home prices continue to climb with a 11.1% year-over-year increase from last March. This number has been dropping slowly over
The number of upside-down mortgages continues to fall nationwide along with delinquent credit card payments. American consumers are demonstrating the lessons learned from the buy-now-pay-later, get-rich-quick days of the first decade of the 21st Century.
CoreLogic's 2nd Quarter 2013 Equity Report, released today, shows that nationally 2.5 million residential properties returned to positive equity from Q1 through Q2. This means that in 3 months' time more than 5% of residential home loans were able to reach the surface, though 14.5% of mortgages in America are still underwater.
Credit reporting giant TransUnion released its quarterly credit card debt and delinquencies report in August and their numbers are positively down as well. The number of