Housing Market Volatility and Overvaluation

first_img Tagged with: Home Prices Valuation Volatility Share Save Home / Daily Dose / Housing Market Volatility and Overvaluation Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Home Prices Valuation Volatility 2019-10-16 Seth Welborn  Print This Post Housing Market Volatility and Overvaluation Previous: Stephen J. Kolimaga Joins Altisource as VP, Enterprise Sales Next: FHFA Director Mark Calabria Provides Update on Conservatorship About Author: Seth Welborn Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago October 16, 2019 1,534 Views Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago How overvalued and undervalued are some of the biggest markets in the U.S.? The CoreLogic Home Price Index (HPI) Forecast Validation Report, which compares the increase in the HPI Forecast with the actual HPI results over a 12-month period, indicates that more than a decade of steady growth, volatility has entered the market, reflected in a slightly larger variation between the two HPI indicators.According to the results, with a forecasting gap of 13% above actual home prices, San Jose is one of the most volatile cities in the study. Despite the volatility, San Jose is considered “Normal” by CoreLogic’s market condition indicators, for a majority of the past four years.Nationally, the HPI forecast predicted a national change of 5.7% compared to a 3.3% actual results, a variance of 2.4%.“Long term affordability concerns coupled with consumer sentiment about the general economic climate along with other economic factors caused actual home prices to increase at a slower rate,” CoreLogic states. “This change was particularly noticeable during the spring, when the rate of home purchases tends to be higher.”CoreLogic also examined the most overvalued and undervalued metro areas. Some of the most overvalued metro areas include Miami, Austin-Round Rock, and Cape Coral-Fort Myers at 75%, 66%, and 52% overvalued, respectively. Undervalued markets include Bridgeport-Stamford-Norwalk, Hartford-West Hartford-East Hartford, and New Haven-Milford, at 37%, 34%, and 30% undervalued, respectively.Some of the most accurately forecasted metroes, with a less than 1% difference, were Phoenix-Mesa-Scottsdale, Arizona; Houston-The Woodlands-Sugarland, Texas; Milwaukee-Waukesha-West Allis, Wisconsin; Charlotte-Concord-Gastonia, North and South Carolina; and Atlanta-Sandy Springs-Roswell, Georgia. CoreLogic notes that three major metros in Texas made the top 10 most accurately forecasted metroes, however, some Texas metroes have also experienced significant slowdowns in appreciation. Austin-Round Rock, Dallas-Plano-Irving, and San Antonio all had appreciation rates of between 1% and 3% during the 12-month period, among the slowest 25 metroes. Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Market Studies, News Subscribelast_img