PROVIDENCE – Single-family home prices in the Providence-Warwick metropolitan area rose 8.2 percent year over year in April, according to a CoreLogic home price report Tuesday.
The HPI in Rhode Island increased 9.1 percent year over year while Massachusetts experienced a 6.3 percent HPI increase in that time. Rhode Island had the highest year-over-year HPI growth in New England, edging out Maine at 9 percent. Connecticut had the slowest rise in HPI year over year at 1.8 percent.
Rhode Island HPI was projected to increase 5.1 percent by April 2019.
“The best antidote for rising home prices is additional supply,” Frank Nothaft, chief economist for CoreLogic, said in a statement. “New construction has failed to keep up with and meet new housing growth or replace existing inventory. More construction of for-sale and rental housing will alleviate housing cost pressures.”
Nationally, home prices have seen a 6.9 percent year over year increase and a 1.2 percent month-to-month increase. The CoreLogic HPI forecast predicts that the national HPI will continue to rise by 5.3 percent on a year-over-year basis from April 2018-April 2019, and 0.2 percent by May 2018.
CoreLogic analyzed housing values in the country’s 100 largest metropolitan areas based on housing stock and found that 40 percent of metropolitan areas have an overvalued housing market, 28 percent were undervalued, and 32 percent were at value. Overvalued housing prices are defined as being 10 percent higher than the long-term, sustainable level, while undervalued housing is a market where home prices fall at least 10 percent below the sustainable level.
The Providence metro area was found to be properly valued.
Haley Hunt is a PBN contributing writer.
