Choosing a good period of buying a new house has always looked like the stock market. Consumers have to check the history of this industry and other indices to determine the appropriate time to plan the acquisition. A new report showed a continuous ascension of American home prices throughout the month of May. There are more data that describe the evolution of this branch.
The High Home Prices Reflect a Shortage of Available Estates
On Tuesday, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index released a new report on the situation of home prices in America. The month of March recorded a 5.8% annual gain for this domain. By comparison, February reported a 5.7% increase. By taking a glimpse into the evolution of the real estate industry over the past few years, data show a 33-month high gain.
This expensive boom generates more discomfort to home buyers than meets the eye. The causes behind these price increases are revealing a concerning issue. The United States is going through a shortage of existing and new homes. On the other hand, the labor market is experiencing an income growth. This more stable financial status encourages Americans to take this important step and purchase their very first house or trade their existing one with a better location.
The chief economist at Zillow, Svenda Gudell, claimed that this industry is trapped between two extreme factors. While there are many citizens willing to move in a new home, the market has fewer options than before. This forces the industry to set up high home prices.
“Home buyer demand is sky high, inventory levels are near rock-bottom, and home prices keep rising.”
New York Recorded the Smallest Gain
Judging by the past performances, S&P Case-Schiller reached the consensus that each month the national index climbs 0.3% seasonally adjusted. At the same time, the 10- and 2-city indices rise 0.9%. Out of the total of 20, 17 urban areas announced increases each month after seasonal adjustment.
As far as the 20 representative metro areas are concerned, half of them reached increased indexes by more than 6%. Seattle, Portland, and Dallas are on the top of the list with year-over-year gains of 12.3%, 9.2%, and 8.6% respectively. New York finds itself at the other pole with the smallest gain of 4.1%.
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