More than 30 of the top 100 cities in the US had overvalued residential property markets in July, following a 6.7% year-over-year increase in home prices.
The newest data showed that home values also rose 0.9% compared to prices in June. If you are looking to buy properties, you may need a home loan calculator for Utah homes, as prices there climbed the most after Washington.
Records show a 10.8% and 12.9% growth in home prices in Utah and Washington, respectively, including distressed home sales. Chief economist Frank Nothaft said that price movements in these two states are especially prominent due to home prices rising by 3 percentage points since January 2017.
Meanwhile, a total of 34 cities out of the top 100 urban areas in the country had overvalued housing markets in July, according to CoreLogic’s Market Conditions Indicators (MCI). The MCI data also revealed that 28% of the top metropolitan areas were undervalued, while 38% were at value. It based its findings on a comparison of prices over their long-term, sustainable levels that are affected by factors such as disposable income.
Those looking to buy homes in major cities should brace themselves for huge price hikes. In Denver, home values rose the highest in July at 8.3%, followed by Las Vegas with a 7.7% price increase. Homes in San Diego and San Francisco rose 7.2% and 7.1%, respectively. Los Angeles completed the top five cities with a 6.9% increase in housing prices.
Experts believe that the current trend of rising prices will persist in the near future, as it expects housing prices in July 2018 to grow 5% year over year and increase by 0.4% month over month.
While home prices are expected to increase steadily in the near future, homebuyers should consider different financing options to help them realize their dream of having their own house.