New York’s home prices picked up steam in March after months of weak growth, according to the latest S&P CoreLogic Case-Shiller Index.
Home prices in the Big Apple rose by a seasonally adjusted 1.1 percent between February and March (up from 0 percent a month earlier), the second-fastest pace in the U.S. behind only Minneapolis. The index does not include condos and co-ops, meaning it only captures a share of the New York market and serves as more of a bellwether of the suburban market.
On a year-over-year basis New York continues to lag behind the rest of the U.S. with 4.1 percent growth — the weakest pace among 20 major cities measured by Case-Shiller. Seattle led the country with 12.3 percent, followed by Dallas with 8.6 percent and Denver with 8.4 percent.
Prices grew by 6 percent year-over-year in Miami and by 5.3 percent in Los Angeles.
“Over the last year, analysts suggested that one factor pushing prices higher was the unusually low inventory of homes for sale. People are staying in their homes longer rather than selling and trading up,” said David Blitzer of S&P Dow Jones’ index committee. “If mortgage rates, currently near 4%, rise further, this could deter more people from selling and keep pressure on inventories and prices.” — Konrad Putzier