Home prices rose across the nation in July with San Diego experiencing one the biggest increases. According to the latest data from research firm CoreLogic, America's Finest City posted a 7.2 percent increase in home prices from July 2016. This ranks only behind Denver (8.3 percent) and Las Vegas (7.7 percent) in growth.
Rising demand from strong employment numbers coupled with tight inventory is pushing prices beyond affordability. As of July, 34 percent of the nation's top 100 metropolitan markets were considered overvalued. CoreLogic's Market Conditions Indicators categorize a market as overvalued when home prices are at least 10 percent higher than the long-term sustainable level.
Looking to the coming year, forecasts indicate that home prices will continue to climb – 5 percent by July 2018.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent while 15-year rates are near 3 percent. According to Freddie Mac, this marks a new low for 2017 thus far.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.