Houston area home prices rose 5.4 percent over the last year through July, slightly below the national appreciation rate of 6.2 percent, a new CoreLogic report showed.
Values in Las Vegas and San Francisco, meanwhile, rose at more than double the rate in Houston, gaining 13.5 percent and 11 percent respectively, according to CoreLogic’s Home Price Index for July. The Irvine, Calif.-based property information and analytics company released the report Tuesday.
New York registered a 1.3 percent year-over-year gain, while the Washington, D.C. metro market rose 2.6 percent. Prices rose 6.1 percent annually in Boston and 4.6 percent in Miami.
Texas matched Houston’s price gain of 5.4 percent, while Nevada, Washington and Idaho showed double-digit gains.
"With increased interest rates and home prices, the CoreLogic Home Price Index is rising at a slower rate than it was earlier this year," CoreLogic chief economist Frank Nothaft said in an announcement.
"While markets in the western part of the country continue to experience rapid home-price growth, many of those metros are overvalued, and will likely experience a slowdown soon," Nothaft said.
CoreLogic considers the housing stock in 40 percent of nation’s 100 largest metro areas overvalued. The company defines overvalued markets as having home prices that are at least 10 percent higher than the long-term, sustainable level.
Houston, Las Vegas, Los Angeles, Denver, Boston, Miami, Washington, D.C. and New York are among the overvalued cities.
On a month over month basis, home prices rose 0.6 percent in the Houston area, compared with an increase of 0.3 percent nationally in July.
The national home-price index is projected to increase by 5.1 percent from July 2018 to July 2019.
"Many consumers see their homes as good investments," CoreLogic president and CEO Frank Martell said.
"Our consumer research indicates homeowners, especially those in high-price growth markets, are confident that by waiting to sell, they will receive a greater return on investment than they would today. In other words, sellers are largely staying put. With fewer homes on the market, price pressure will continue to rise."