Home prices are now hitting the bubble level in four of the ten largest metros. And it could be a warning for the rest of the nation.
Data analysis firm CoreLogic releases a monthly report on home prices. The one for June was just released, and it shows a 6.7% year-over-year increase in home prices from June of last year. They are still more than 16% below their peak, but CoreLogic says they’ve risen almost 50% since their lowest level during the downturn.
CoreLogic CEO Frank Martell says the steady rise in prices is due to the tight inventory, and that prices will continue to rise if we don’t solve the housing supply challenge. He says: “Home prices are marching ever higher, up almost 50 percent since the trough in March 2011. With no end to the escalation in sight, affordability is rapidly deteriorating nationally and especially in some key markets.”
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