Home Prices in 20 U.S. Cities Climb by Most Since July 2014
Source: Bloomberg
By Sho Chandra
January 26, 2016 — 9:00 AM EST
Updated on January 26, 2016 — 9:15 AM EST
Home prices in 20 U.S. cities rose at a faster pace in the year ended November, underscoring the shortage of supply amid steady demand.
The S&P/Case-Shiller index of property values in 20 cities increased 5.8 percent from a year earlier, the biggest advance since July 2014, a report from the group showed Tuesday in New York. The median projection of 31 economists surveyed by Bloomberg called for a 5.7 percent gain. Nationally, prices rose 5.3 percent year-over-year.
Low inventories are boosting property values, helping support household wealth for homeowners and offsetting some of the damage from the drop in stock prices. While mortgage rates are expected to stay low, faster wage growth is needed to bring homes within reach of more Americans, underpinning the industry’s recovery this year.
“There’s a positive underlying picture in the trend in home prices,” said David Sloan, a senior economist at 4Cast Inc. in New York, who correctly projected the gain. “As long as demand is strong, the price appreciation will persist. We expect it to continue this year.”
Read more: http://www.bloomberg.com/news/articles/2016-01-26/home-prices-in-u-s-cities-rise-at-fastest-pace-since-july-2014
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