Recent analysis from CoreLogic shows that home prices rose 6 percent year over year in December, with another 4.3 percent increase predicted by the end of 2018.
With that being said, Realtors.com said that 35% of the 100 largest U.S. home markets are over-valued. Many of those markets are on the West coast. What drove the home price up? The number of home buyers has increased, but the on market inventory remains very low. Rising demand and limited inventory are the 2 ingredients for the perfect storm.
The states with the biggest annual price jumps were Washington, at 12%; Nevada, at 11%; and Idaho and Utah, at 10.7%. Rhode Island and California both saw 8.2% increases, while prices were up 8.1% in Maine and 8% in Colorado.
I don’t know about you, but I often wonder when we will all hear the next “POP” in the housing bubble. Being a person who was tangled up in the last housing crunch in 2007, that POP is nothing I’m looking forward to. The market will undoubtably make a correction. I’m hoping if has to happen at all, that it’s softer this time around.