Rise in Home Prices in 20 U.S. Cities Reflects Lean Inventory

Rise in Home Prices in 20 U.S. Cities Reflects Lean Inventory

Hot
 
0.0
 
0.0 (0)
229   0   0   0   0   0
CanadianREI  
National Real Estate Investor

(Bloomberg)—A larger-than-forecast increase in home prices in 20 U.S. cities in March underscores both steady demand and lean inventory, figures from S&P CoreLogic Case-Shiller showed Tuesday.

Highlights of Home Price Report (March)

20-city property values index rose 5.9% from March 2016 (forecast 5.7%), matching February as biggest since July 2014 National price gauge climbed 5.8% in the 12 months through March Seasonally adjusted 20-city index rose 0.9% from a month earlier (matching forecast)

Key Takeaway

Mortgage rates at a six-month low, along with a strong job market and healthier finances, are giving prospective buyers more wherewithal to make purchases. In addition to rising demand, persistent inventory shortages in the previously owned property market are also contributing to price gains. At the same time, wage growth has been slower to pick up than property values, representing a potential headwind to even faster price gains.

Economist Views

“While there is some regional variation, prices are rising across the U.S.,” David Blitzer, chairman of the S&P index committee, said in a statement. The gain reflected “unusually low inventory of homes for sale.” He said “there is no way to tell when rising prices and mortgage rates will force a slowdown in housing.”

Other Details

All 20 cities in the index showed year-over-year gains, led by a 12.3 percent increase in Seattle and a 9.2 percent advance in Portland, Oregon After seasonal adjustment, Minneapolis had the biggest month-over-month rise at 1.3 percent, followed by Detroit with a 1.2 percent increase  Home prices fell in Cleveland and Tampa, Florida, from the prior month

--With assistance from Jordan Yadoo.To contact the reporter on this story: Shobhana Chandra in Washington at [email protected][1] To contact the editors responsible for this story: Scott Lanman at [email protected][2] Vince Golle, Brendan Murray

COPYRIGHT

© 2017 Bloomberg L.P

References

  1. ^ [email protected] (www.nreionline.com)
  2. ^ [email protected] (www.nreionline.com)

(Bloomberg)—A larger-than-forecast increase in home prices in 20 U.S. cities in March underscores both steady demand and lean inventory, figures from S&P CoreLogic Case-Shiller showed Tuesday.

Highlights of Home Price Report (March)

20-city property values index rose 5.9% from March 2016 (forecast 5.7%), matching February as biggest since July 2014 National price gauge climbed 5.8% in the 12 months through March Seasonally adjusted 20-city index rose 0.9% from a month earlier (matching forecast)

Key Takeaway

Mortgage rates at a six-month low, along with a strong job market and healthier finances, are giving prospective buyers more wherewithal to make purchases. In addition to rising demand, persistent inventory shortages in the previously owned property market are also contributing to price gains. At the same time, wage growth has been slower to pick up than property values, representing a potential headwind to even faster price gains.

Economist Views

“While there is some regional variation, prices are rising across the U.S.,” David Blitzer, chairman of the S&P index committee, said in a statement. The gain reflected “unusually low inventory of homes for sale.” He said “there is no way to tell when rising prices and mortgage rates will force a slowdown in housing.”

Other Details

All 20 cities in the index showed year-over-year gains, led by a 12.3 percent increase in Seattle and a 9.2 percent advance in Portland, Oregon After seasonal adjustment, Minneapolis had the biggest month-over-month rise at 1.3 percent, followed by Detroit with a 1.2 percent increase  Home prices fell in Cleveland and Tampa, Florida, from the prior month

--With assistance from Jordan Yadoo.To contact the reporter on this story: Shobhana Chandra in Washington at [email protected][1] To contact the editors responsible for this story: Scott Lanman at [email protected][2] Vince Golle, Brendan Murray

COPYRIGHT

© 2017 Bloomberg L.P

References

  1. ^ [email protected] (www.nreionline.com)
  2. ^ [email protected] (www.nreionline.com)

Authors: CanadianREI

Read more

User reviews

There are no user reviews for this listing.
Inflation on the Rise; Stats Can
Inflation moved beyond comfortable territory in August, according to...
 
0.0
 
0.0 (0)
A new book predicting Canada’s biggest housing market crash[1]...
 
0.0
 
0.0 (0)
American Dream Mega Mall Secures Initial Approval from Miami-Dade Commission
The Miami-Dade County Commission on Wednesday granted...
 
0.0
 
0.0 (0)
10 Must Reads for the CRE Industry Today (January 4, 2017)
As developers push more condominium units onto the market this...
 
0.0
 
0.0 (0)
Top SFR Owners Plan to Grow in 2017
Strong demand from tenants, new technology tools...
 
0.0
 
0.0 (0)
The only way is up for prices
2014 is looking to be a good year...
 
0.0
 
0.0 (0)
Forest City Says It's Considering Options Including a Merger | National Real Estate Investor
(Bloomberg)—Forest City Realty Trust Inc., a property...
 
0.0
 
0.0 (0)
One Realtors’ association is pleading with the provincial powers...
 
0.0
 
0.0 (0)
Canada Pension Plan Agrees to Buy Parkway REIT for $1.2 Billion
(Bloomberg)—Canada Pension Plan Investment Board agreed to...
 
0.0
 
0.0 (0)
Report Suggests Upcoming Home Price Dive
Higher interest rates could “easily” cause Canadian home prices...
 
0.0
 
0.0 (0)