Florida makes top five for expected home price increase

Home prices continue to increase all over the nation for the 52nd consecutive month, according to CoreLogic’s monthly Home Price Index report – but some notable metros could possibly have overvalued markets. Including distressed sales, single-family home prices nationwide increased 1.3 percent from April to May, CoreLogic says, which came out to a 5.9 % gain year-over-year. The real estate data firm forecasts home values to jump another 0.8% in June and 5.3 percent by May of next year. Florida made the top 5 states.

Florida makes top five for expected home price increase

“Housing remained an oasis of stability in May, with home prices rising year-over-year between 5 percent and 6 percent for 22 consecutive months,” Chief Economist for CoreLogic Dr. Frank Nothaft said in a statement. “The consistently solid growth in home prices has been driven by the highest resale activity in nine years and a still-tight housing inventory.”

Even though the HPI continues to move up year-over-year month after month, it remains 7.2% under the peak values of April 2006. However, CoreLogic expects single-family home prices to reach a new peak by September 2017.

While markets throughout the country are experiencing healthy rebounds, CoreLogic points that lots of them could be overvalued. Comparing the distance between a market’s long-term fundamental value and HPI, CoreLogic defined an existing HPI of 10 % above or below the long-term fundamental value for that market as undervalued or overvalued.

Notable overvalued markets include Denver, Houston, Los Angeles, Miami and Washington D.C., while Chicago and San Francisco were considered in normal market conditions.

The Miami-Maimi Beach-Kendall area saw a strong May, with 0.9 % growth over April and a 5.9 percent bump year-over-year. Although considered overvalued by CoreLogic like the majority of Florida, Miami’s HPI is predicted to grow 0.9 % in June and 6.4 percent by May 2017.

Florida’s comeback from the housing recession isn’t delaying, with 7.3 percent year-over-year increase in May 2016 and a forecasted increase of 7% by May of next year – trailing only California, Oregon, Nevada and New Hampshire’s HPIs for highest expected increase.

CoreLogic’s home price index uses public record together with servicing and securities real estate databases and incorporates in excess of 40 years of sales transactions to evaluate trends. Its home price index forecasts are based on a two-stage model that combines the equilibrium home price (as a function of real, disposable income per capita) with short-run fluctuations brought on by market changes and other economic “shocks” – shifts in the unemployment rate, for example.

So if you are considering purchasing your new home, now maybe the time to call Nick & Cindy Davis at 813-300-7116 or if you prefer you can simply click here and we will be in touch with you shortly.

Take a look at a few of the most recent homes that came on the market here in the Tampa Area.

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13718 Orange Sunset Drive #202, Tampa, FL

13718 Orange Sunset Drive #202
Tampa, FL

$149,500
- Lot Size
  
  436 sqft
- Home Size
  
  899 sqft
- Beds
  
  1 Bed
- Baths
  
  1 Bath
- Year Built
  
  1976
- Days on Market
  
  2