US home prices soared in April at the fastest pace since 2005 as potential buyers priced a limited supply of available properties.
The S & P Core Logic Case-Shiller 20 City Home Price Index, released Tuesday, surged nearly 15% year-on-year in April. This is up from an annual increase of 13.4% in March.
Many Americans have been looking for more living space since the coronavirus pandemic began, looking for larger suburban homes rather than small apartments or urban homes.Historically low mortgage rates, partially constrained by the Federal ReserveAnd, just as large millennials enter their peak home buying season, they are spurring demand.
The rise in prices was so dramatic that home sales began to slow as more buyers were priced from the market.
“Despite slowing home sales, inventory depletion continues to push up home prices in April,” said Nancy Vanden Horten, an economist at Oxford Economics.
Still, there are few signs that the sharp rise in housing prices will soon cool down.
Matthew Speakman, an economist at real estate data provider Zillow, said:
All 20 cities that make up the Case-Shille index reported year-over-year price increases in April, higher than the previous month. Five cities, Charlotte, Cleveland, Dallas, Denver and Seattle, had the largest 12-month price increases on record 30 years ago.
According to the Case-Shiller Index, Phoenix reported the largest price increase for 22 consecutive months in April, up 22.3% year-on-year. San Diego was followed by 21.6%, followed by Seattle at 20.2%.
Even with the rise in demand during the pandemic, few Americans were willing to sell their property and probably hated a wave of potential buyers rushing through their homes. This has significantly reduced the number of available homes.In most properties. Almost half of the homes sold last month were sold above the asking price, according to real estate firm Redfin.
In May, the number of available homes increased slightly to 1.23 million. However, it still decreased by 21% compared to a year ago.
Sales of existing homes have declined for the fourth straight month. This is probably because the soaring prices have discouraged some prospective buyers. Still, demand is strong enough that typical homes were on the market for just 17 days last month, the National Association of Real Estate Agents said. Nearly 9 out of 10 were on the market in less than a month.
U.S. home prices skyrocket at the fastest pace in over 15 years
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