Las Vegas Home Prices Surge 5.4% Higher
Las Vegas home prices led the nation again among metropolitan markets throughout the U.S. in July, raking in an average of 5.4% year over year, according to the CoreLogic Home Price Index, which tracks the nation’s top 100 metro areas.
Home prices nationwide, including distressed sales, increased year over year by 3.6% in July compared to July 2018 and increased month over month by 0.5% in July 2019 compared with June 2019.
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.
“Sales of new and existing homes this July were up from a year ago, supported by low mortgage rates and rising family income, ” said CoreLogic chief economist Frank Nothaft. “With the for-sale inventory remaining low in many markets, the pick up in buying has nudged price growth up.”
In an analysis of the country’s 100 largest metropolitan areas based on housing stock, 37% of cities have an overvalued housing stock as of July, according to CoreLogic Market Conditions Indicators (MCI) data. The 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.
As of July, 23% of the top 100 metropolitan areas were undervalued and 40% were at value. When looking at only the top 50 markets based on housing stock, 40% were overvalued, 16% were undervalued and 44% were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10% higher than the long-term, while an undervalued housing market is one in which home prices are at least 10% below the sustainable level.