CoreLogic, a leader in global property data analysis, has recently released July data. This data saw a 6.2% increase in prices during the prior 12 months, and the increase is projected to continue into next year, albeit at a slower rate. The estimation is a 5.1% increase from July 2018 to July 2019. CoreLogic’s Market Condition Indicators (MCI) show that 40% of the top 100 markets are above market value and another 40% at market value as of July, with only 20% below market value. The top 50 data is 50% overvalued, 38% at value, and 12% undervalued.
Increased interest rates and overvaluation are contributing to the slowing rate of growth, but it’s still growth. As such, CoreLogic believes the reason fewer homes are on the market despite high prices is that homeowners believe prices will continue to rise. Sellers are holding out for a higher price before they decide to sell.