Think Inland homes are expensive now? Wait till next year

Think Inland homes are expensive now? Wait till next year …

CoreLogic says Inland home prices are overvalued, ‘more than 10 percent of its long-run sustainable level’
Think Inland homes are expensive now? Wait till next year … – Press Enterprise


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The home price index for the Inland area was up more than 6 percent in November over the same month in 2015, part of an upward national trend that now appears to be slowing, according to property market analyst CoreLogic.

The index, based in part on records of repeat sales of homes over 40 years, also concluded that California’s year-over-year index for November was 5.5 percent, and the nation’s was 7.1 percent.

The index growth has been steady for 58 months and should continue this year, CoreLogic chief economist Frank Nothaft said in a statement.

But he added that rising mortgage rates will slow the rise, and it is expected to be at 4.7 percent year over year in November 2017.

The Riverside area’s growth at 6.06 percent joined other Southern California indexes that moved upward, with Los Angeles at 6.8 percent, Orange County at 4.4 percent and the San Diego area at 6.2 percent.

CoreLogic sees the Riverside, Los Angeles and Orange County areas as overvalued, meaning the home price is “more than 10 percent of its long-run sustainable level.”

In April, CoreLogic placed the Inland area as third on its nationwide list of overvalued housing markets, with a home price index growth rate of 56 percent since January 2012.

But homes in the area remained 23 percent below their April 2006 peak value, according to the November index report released this week.

Last month CoreLogic reported that home sales in Riverside County were up 2.4 percent for November at 3,351, with the median price at $340,000, up 1.5 percent.

In San Bernardino County, there were 2,500 sales, a 1 percent drop from the previous month, with the median price at $295,000, up 3.5 percent.

Home prices in for the Inland area remain the lowest for the six-county Southern California region covered by CoreLogic, which uses recorded sales for its data.

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