S&P CoreLogic Case-Shiller recently released their National Home Price NSA Index which showed that home prices rose at 5.8% annually in March, representing a 33-month high. Their 10-City Composite posted a 5.2% annual increase and their 20-City Composite reported a year-over-year gain of 5.9%. Seattle, Portland, and Dallas reported the highest year-over-year gains among the 20 cities. Ten cities reported greater price increases in the year ending March 2017 versus the year ending February 2017.
“Sales of both new and existing homes, housing starts and the National Association of Home Builders’ sentiment index are all trending higher. Over the last year, analysts suggested that one factor pushing prices higher was the unusually low inventory of homes for sale. People are staying in their homes longer rather than selling and trading up. If mortgage rates, currently near 4%, rise further, this could deter more people from selling and keep pressure on inventories and prices. While prices cannot rise indefinitely, there is no way to tell when rising prices and mortgage rates will force a slowdown in housing.” Said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
Click here to read the full release.
