Housing prices across the U.S. are still much higher than they were at this time last year — with Miami and Los Angeles posting big gains — although they are starting to dip, according to a new monthly report. Like L.A., other cities across the West are seeing a rise in housing prices, spurred the limited supply and recent population influx.
In the Miami metro area, which includes Kendall and Miami Beach, home prices rose 4.6 percent in July compared to the same period in 2017, according to monthly figures from CoreLogic. In June, they rose 5.35 increase, year over year.
In the Los Angeles metro area, home prices ticked up 7.6 percent in July year over year, down from the 7.67 percent gain they posted in June year over year.
Meanwhile, New York and Chicago rose at a slower rate, suggesting that housing prices there may be experiencing a faster decline. The New York metro area — which includes Jersey City and White Plains — saw its housing prices rise 1.16 percent year over year in July.
Chicago saw home prices rise 3.72 percent year over year.
According to CoreLogic’s analysis of analyzed housing values in the country’s 100 largest metropolitan areas, 40 percent of those areas have an overvalued housing market as of July 2018. They include New York, Miami and Los Angeles, but not Chicago.
Across major Western U.S. cities, home prices rose far above the national average of 6.4 percent in July. Las Vegas led the way, posting a 13.5 percent spike in July year over year, according to CoreLogic. CoreLogic’s CEO Frank Nothaft said many of those areas are overvalued and will “likely experience a slowdown soon.” . In Denver and Seattle, the migration has constrained housing supply and pushed up prices. New York and Chicago and other places in the Northeast and Midwest have not experienced that migration at the same rate.
Numerous reports have indicated that while home prices are still very high, they are slowing down in large metro areas across the country as interest rates have increased. Recent data also show that home foreclosures are rising sharply in Miami and throughout the country — experts say it is a product of loose lending — people are having more trouble making their mortgage payments.