overvalued-housing-markets-coverslide-adobe.jpg
More than half of the nation's top 50 housing markets were considered overvalued in April, according to CoreLogic, inflating concerns that another housing bubble is developing.

Among the top 50 markets, 26 were considered overvalued and only seven were undervalued. Expanding the data out to the top 100 markets, 40 were overvalued, while 32 were at value and 28 were undervalued.

Nationwide, home prices in April increased 6.9% from a year ago and 1.2% compared to March, according to the latest CoreLogic home price index. The Irvine, California-based technology and data provider also revised its original March HPI to account for updated data. Likewise, all 50 states saw home prices rise in April year-over-year.

CoreLogic defines an overvalued market as one where home prices are at least 10% above long-term, sustainable levels. Conversely, an undervalued market is one that is at least 10% below sustainable levels.

"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."

There should be a somewhat slower rate of appreciation over the next 12 months. CoreLogic expects a scant 0.2% increase in national home prices in May from April and it predicts prices will rise by 5.3% on a year-over-year basis from April 2019.

However, some individual local markets may still experience rapidly rising prices, putting them at risk of a housing bubble.

Here's a look at 12 overvalued housing markets with the largest annual increase in home prices, according to CoreLogic.

The April median sales price data is based on estimates provided by CoreLogic. The April home sales count information was aggregated from state and local Realtor associations, multiple listing services, and Trulia.
NMN060518-phoenix.jpg
City of Phoenix Panorama. Phoenix, Arizona, United States.
No. 12: Phoenix
Median sales price: $250,642
Annual home price index increase: 7%
Home sales: 8,990
NMN060518-st-petersburg.jpg
Skyline of St. Petersburg, Florida
No. 11: Tampa-St. Petersburg, Florida
Median sales price: $190,512
Annual home price index increase: 7.9%
Home sales: 4,003
NMN060518-ftworth.jpg
FORT WORTH, TX - May 12: Water fountains in Sundance Square in Fort Worth, Texas on May 12, 2017.
No. 10: Fort Worth, Texas
Median sales price: $232,721
Annual home price index increase: 8%
Home sales: 1,112
NMN060518-nashville.jpg
Nashville Skyline, Tennessee and the Cumberland River with river reflection
No. 9: Nashville, Tennessee
Median sales price: $254,015
Annual home price index increase: 8.1%
Home sales: 3,419
NMN060518-riverside.jpg
Evening light on on distant mountains and the city of Riverside, from Mount Rubidoux Park, in Riverside, California.
No. 8: Riverside, California
Median sales price: $343,046
Annual home price index increase: 8.2%
Home sales: 822
NMN060518-los-angeles.jpg
Los Angeles, California, USA downtown cityscape.
No. 7: Los Angeles
Median sales price: $597,975
Annual home price index increase: 8.5%
Home sales: 1,932
NMN060518-denver.jpg
Denver, Colorado City Hall with Colorful Fall Leaves and the Rocky Mountains in the Background
No. 6: Denver
Median sales price: $404,000
Annual home price increase: 8.9%
Home sales: 4,037
NMN060518-portland.jpg
The newest bridge across Portland's famous riverfront
No. 5: Portland, Oregon
Median sales price: $365,368
Annual home price index increase: 9.5%
Home sales: 2,523
NMN060518-oakland.jpg
No. 4: Oakland, California
Median sales price: $725,544
Annual home price index increase: 10.3%
Home sales: 607
NMN060518-las-vegas.jpg
No. 3: Las Vegas
Median sales price: $267,574
Annual home price index increase: 12.8%
Home sales: 2,878
NMN060518-seattle.jpg
Seattle Public Market Sign, Pike Place Market, Seattle WA, USA
No. 2: Seattle
Median sales price: $541,566
Annual home price index increase: 13.9%
Home sales: 7,726
NMN060518-san-jose.jpg
No. 1: San Jose, California
Median sales price: $1,174,355
Annual home price index increase: 19.7%
Home sales: 1,439
This article originally appeared in National Mortgage News.
MORE FROM FINANCIAL PLANNING