Home Prices in 20 US Cities Accelerate for a Fifth Month
Home prices in 20 U.S. cities accelerated in the year through February for a fifth month, while nationwide property values also picked up, according to S&P CoreLogic Case-Shiller data reported April 25.
Key Points
• The 20-city property values index climbed 5.9% from February 2016 (forecast was 5.8%), the fastest since July 2014, after increasing 5.7% in the year through January.
• National home-price gauge rose 5.8% in the 12 months through February.
• Seasonally adjusted 20-city index advanced 0.7% from a month earlier (matching the Bloomberg survey median).
Big Picture
While mortgage rates have eased in recent weeks after a post-election surge, housing affordability is being crimped by lingering inventory shortages and wage growth that’s been slower to pick up than property values.
At the same time, steady labor-market progress and healthier household balance sheets help explain why Americans are still propelling demand for the industry even as home prices are on a tear.
Economist Takeaways
“There are still relatively few existing homes listed for sale and the small 3.8 month supply is supporting the recent price increases,” David Blitzer, chairman of the S&P index committee, said in a statement. “Housing affordability has declined since 2012 as the pressure of higher prices has been a larger factor than stable-to-lower mortgage rates.”
The Details
• All 20 cities in the index showed year-over-year gains, led by a 12.2% increase in Seattle and a 9.7% advance in Portland, Oregon.
• After seasonal adjustment, Seattle had the biggest month-over-month rise at 1.9%, followed by Dallas with a 1.2% increase; home prices were unchanged in Tampa.
