A key measure of US national home prices hit another record high in June
A key measure of US national home prices hit another record high in June.
The S&P CoreLogic US National Home Price NSA Index was up 5.8% on an annual basis in June; rising from 5.7% in May.
The 10-City Composite was up 5.9% year over year, slightly down from 5% in May; while the 20-City composite was unchanged with a 5.7% rise.
"The trend of increasing home prices is continuing," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "Price increases are supported by a tight housing market. Both the number of homes for sale and the number of days a house is on the market have declined for four to five years.”
On an annual basis, 9 out of the 20 cities had increased prices in the year ending June 2017 compared to the year ending May 2017.
Seattle led the way with a 13.4% year-over-year rise followed by Portland (8.2%) and Dallas (7.2%).
Blitzer says that, despite challenges to affordability from rising prices, other factors mean that a reversal in home prices in the short-term appears unlikely.
"The national unemployment rate is down, and the number of jobs created continues to grow at a robust pace,” he said. “Wages and salaries are increasing, maintaining a growth rate a bit ahead of inflation. Mortgage rates, up slightly since the end of 2016, are under 4%.”
The S&P CoreLogic US National Home Price NSA Index was up 5.8% on an annual basis in June; rising from 5.7% in May.
The 10-City Composite was up 5.9% year over year, slightly down from 5% in May; while the 20-City composite was unchanged with a 5.7% rise.
"The trend of increasing home prices is continuing," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "Price increases are supported by a tight housing market. Both the number of homes for sale and the number of days a house is on the market have declined for four to five years.”
On an annual basis, 9 out of the 20 cities had increased prices in the year ending June 2017 compared to the year ending May 2017.
Seattle led the way with a 13.4% year-over-year rise followed by Portland (8.2%) and Dallas (7.2%).
Blitzer says that, despite challenges to affordability from rising prices, other factors mean that a reversal in home prices in the short-term appears unlikely.
"The national unemployment rate is down, and the number of jobs created continues to grow at a robust pace,” he said. “Wages and salaries are increasing, maintaining a growth rate a bit ahead of inflation. Mortgage rates, up slightly since the end of 2016, are under 4%.”
