Home prices in the U.S. continued to rise in February, a new report showed.
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According to CoreLogic, prices nationwide increased 6.7% year-over-year in February, and were up 1% from January.
The analysis showed that as family income rises more slowly than home prices and mortgage rates, 50% of the 50 largest metropolitan areas are overvalued.
But some markets experienced bigger price jumps than others.
In Washington, for example, home prices jumped by 12.5%. In Nevada, prices rose 12.2%, while Utah saw 11.1% growth in home prices over the past year. Idaho also experienced double-digit increases at more than 10%.
Among the states with the lowest growth in home prices were Oklahoma, Connecticut, South Dakota, Wyoming and Delaware.
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For the major metropolitan areas, prices in Las Vegas increased the most, by 12.4%, while San Francisco followed with an increase of 9.6%. In Denver, prices rose 8.7%, while they jumped 8.5% in Los Angeles.
Meanwhile, experts think prices will continue to rise in the near future. Contributing to the sustained growth is the fact that there’s a lower supply of homes, coupled with strong demand.
Home prices are now higher than they were at the peak of the housing boom. The National Association of Realtors and Freddie Mac estimate that median price growth will accelerate by 3.5% in 2018, and in some cases will rise faster than income gains over the coming years.
Interest rates are also on the rise as the Federal Reserve continues on the path toward normalization, which has the potential to disrupt the market even further.
