WASHINGTON – Prices for U.S. homes roseate faster successful May than they person successful 17 years arsenic surging request for lodging outstripped the supply.
The S&P CoreLogic Case-Shiller 20-city location terms index, released Tuesday, soared 17% successful May from a twelvemonth earlier connected apical of a 15% leap successful April. The May summation was the biggest since August 2004.
The hottest markets were Phoenix (where prices surged 25.9%), San Diego (24.7%) and Seattle (23.4%). All 20 cities reported faster year-over-year maturation successful May than they did successful April.
The U.S. lodging marketplace has been hot. Many Americans, bushed of being cooped up astatine location during the pandemic, person traded successful apartments and tiny homes successful metropolis for bigger houses successful the suburbs. The Federal Reserve's casual wealth policies person besides kept owe rates adjacent historical lows, pushing up request for housing.
The proviso of houses for merchantability has been limited, partially due to the fact that galore Americans are reluctant to enactment their properties connected the marketplace and let would-be buyers to unit done their homes.
But rising prices person pushed galore would-be buyers retired of the market. The Commerce Department reported Monday that income of caller homes fell successful June for the 3rd consecutive month, sliding to the lowest level successful much than a year. Last week, the National Association of Realtors reported that income of antecedently occupied homes roseate successful June, snapping a four-month losing streak.
“Price pressures stay precise steadfast and look acceptable to enactment that mode successful the months to come,’’ said Matthew Speakman, economist astatine the existent property steadfast Zillow. “Indeed, sharply rising prices bash look to person priced retired immoderate location shoppers, peculiarly those looking to participate the marketplace for the archetypal time, and causing fatigue among would-be buyers. But wide request for homes remains precise firm.’’
Copyright 2021 The Associated Press. All rights reserved. This worldly whitethorn not beryllium published, broadcast, rewritten oregon redistributed without permission.