A recent report has shown home prices throughout the Central Valley to be up over the same time last year, but those prices might be coming down.
In its December 2017 data report, CoreLogic, an analytics and data provider, stated that home prices nationally were up 6.6 percent in December over the same time in 2016.
Locally, home prices in Stockton-Lodi and Modesto were also up. In Stockton-Lodi, prices increased by 7.8 percent year-over-year. In Modesto, prices were up 9.1 percent year-over-year. Those prices include distressed sales.
From November 2017 to December 2017, prices increased by 0.5 percent in Stockton-Lodi and decreased 0.4 percent in Modesto.
“Home prices continue to rise as a result of aggressive monetary policy, the economic and jobs recovery and a lack of housing stock. The largest price gains during 2017 were in five Western states: California, Idaho, Nevada, Utah and Washington,” said Frank Martell, president and CEO of CoreLogic in a press release. “As home prices and the cost of originating loans rise, affordability continues to erode, making it more challenging for both first-time buyers and moderate-income families to buy. At this point, we estimate that more than one-third of the 100 largest metropolitan areas are overvalued.”
Thirty-five percent of the metropolitan areas with the overvalued housing markets have prices that are 10 percent above a long-run sustainable level, CoreLogic reports.
“The number of homes for sale has remained very low,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”