The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 5.6% annual gain for May, 2017. Their 10-City Composite annual increase came in at 4.9% and their 20-City Composite posted a 4.9% year-over-year gain. Seattle once again led the way with a 13.3% year-over-year price increase, followed by Portland at 8.9%, and Denver with a 7.9% increase. Nine U.S. cities reported greater price increases in the year ending May 2017 versus the year ending March 2017.
“Home prices continue to climb and outpace both inflation and wages,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Housing is not repeating the bubble period of 2000-2006: price increases vary across the country unlike the earlier period when rising prices were almost universal; the number of homes sold annually is 20% less today than in the earlier period and the months’ supply is declining, not surging. The small supply of homes for sale, at only about four months’ worth, is one cause of rising prices. New home construction, higher than during the recession but still low, is another factor in rising prices.”
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