CoreLogic: Home Prices Jump 6.7% Annually in July

34 of top 100 markets now overvalued

Home prices increased once again in July, making more than one-third of the top 100 U.S. cities overvalued, according to the latest Home Price Index from CoreLogic.

Home prices increased 6.7% in July annually from July 2016 and 0.9% monthly from June, CoreLogic’s HPI showed.

CoreLogic also predicted home prices will increase 5% by July 2018 and 0.4% in August, according to the HPI Forecast. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“In July, home price growth in the Pacific Northwest and mountain states led the nation with the highest appreciation rates,” CoreLogic Chief Economist Frank Nothaft said. “The sharp increase in prices in Washington and Utah has been especially striking, with home price growth in both states accelerating by 3% points since the beginning of this year.”

CoreLogic found out of the country’s top 100 metropolitan areas, 34% became overvalued in July, according to its Market Conditions Indicators data. The MCI showed 28% of the top markets were undervalued and 38% were at value.