Home prices rising fastest in these states

By Personal FinanceFOXBusiness

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Home prices in July rose 6.2 percent compared with the year prior, according to CoreLogic’s monthly forecast, as an inventory crunch and construction worker shortage continues to put pressure on the market.

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Home prices are forecast to rise another 5.1 percent over the next 12 months, while half of the top 50 markets are already considered overvalued.

But in some states, prices rose significantly more than the national average.

Here are the states where home prices rose the fastest in July.

1. Nevada

Home prices in Nevada jumped by the highest amount out of any state in July, at 12.9 percent. Over the next year, CoreLogic predicts prices will rise by another nearly 9 percent.

Contributing to the intrastate price hike is a jump in costs in Las Vegas, which saw the largest surge in prices – at 13.5 percent – out of any of the major U.S. cities.

2. Idaho

In Idaho, the average price of a home increased by 12.3 percent last month, and is up more than 1 percent month-to-month.

3. Washington

In Washington state, home prices rose by 10.4 percent and are forecast to rise by another nearly 6 percent over the coming 12 months.

Many of the cities along the western part of the state are considered to have home prices that are overvalued, including Seattle.

4. Utah

Home prices in Utah rose 9.3 percent year-over-year in July, and are up 0.3 percent month-over-month.

Prices in the metro areas in the northwestern part of the state, including Salt Lake City, are considered overvalued.

5. California

The Golden State already boasts some of the highest home prices in the country, and those jumped another 8.2 percent last month.

Three of California’s big cities saw a meaningful increase in prices last month, with the cost of a home rising 7.6 percent in Los Angeles, 6.6 percent in San Diego and 11 percent in San Francisco.

On the other hand, home prices in North Dakota declined by 0.4 percent in July, the only state to see a reduction in prices. The average cost of a home in Alaska increased just 0.9 percent.