Home prices increased in the latest S&P CoreLogic Case-Shiller Indices, up 5.9 percent year-over-year in July, compared to 5.8 percent in June.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index’s 10-City Composite rose 5.2 percent year-over-year, up from 4.9 percent in June, while its 20-City Composite rose 5.8 percent year-over-year, up from 5.6 percent in June. Month-over-month, the 10-City Composite and the 20-City Composite both rose, 0.8 percent and 0.7 percent, respectively.
Of the 20 cities analyzed for the Index, Las Vegas, Nev., Portland, Ore., and Seattle, Wash., came out on top, with prices up 7.4 percent year-over-year in Las Vegas, 7.6 percent in Portland and 13.5 percent in Seattle.
Chairman of the Index Committee and Managing Director at S&P Dow Jones Indices David M. Blitzer cautions that home prices could be halted by rising mortgage rates and slipping sales into the new year.
“The housing market will face two contradicting challenges during the rest of 2017 and into 2018,” Blitzer says. “First, rebuilding following hurricanes across Texas, Florida and other parts of the South will lead to further supply pressures. Second, the Fed’s recent move to shrink its balance sheet could push mortgage rates upward.
Constrained inventory, for now, is fueling gains, says Trulia Housing Economist Felipe Chacón.
“Once again, short supply and favorable lending conditions are bringing more homebuyers onto the dance floor only to find scant options,” wrote Chacón in a Trulia Trends blog. “These competitive conditions continue to drive prices ever higher across the biggest housing markets. With new construction slowing recently, low inventory seems likely to persist for the foreseeable future.”
Source: S&P Dow Jones Indices
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