Home prices climbed 6.8 percent on a year-over-year basis in June, according to CoreLogic’s latest Home Price Index. The San Diego Metropolitan area followed right behind the national average with a yearly price gain of 6.7 percent. While this equates to good news for sellers, home price increases only continue to erode affordability for buyers.
“The rise in home prices is beginning to slow existing home sales in some markets,” said Frank Nothaft, CoreLogic’s chief economist. “For June, we found that home sales in the San Francisco Bay Area and Southern California were down 9 and 12 percent, respectively, from one year earlier.”
He added that further increases in home prices and mortgage rates over the next year will likely dampen sales further. CoreLogic forecasts further increases in the coming year, estimating that by June 2019 prices will rise another 5.1 percent nationwide.
Meanwhile, mortgage rates are relatively stable with conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.0 percent.
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