US home prices kept going up in March

Prices climbed by 6.5 percent year-over-year

TRD New York /
May.May 29, 2018 10:30 AM

(Credit: Getty Images)

It doesn’t look like national home prices will slow down anytime soon.

Prices across the country went up by 6.5 percent in March year-over-year, according to the Wall Street Journal, which took its data from the S&P CoreLogic Case-Shiller National Home Price Index.  The biggest gains were in western cities such as Seattle, Las Vegas and San Francisco, which saw respective jumps of 13 percent, 12.4 percent and 11.3 percent.

Economists expect the pace of price growth will go down this year due to the new tax law that reduces homeownership incentives and rising mortgage rates, which are making it more expensive to own a home. Freddie Mac recently reported that the rate for a 30-year mortgage rose from 3.99 percent at the end of 2017 to 4.66 percent last week, and they have so far gone up in 15 out of 21 weeks this year.

Home sales have already started to slow down, falling 1.4 percent in April 2018 compared to April last year. This was the second consecutive month that annual sales went down.

Low inventory is a major factor in price increases, as the supply of houses is close to its lowest level in decades. David Blitzer of S&P Dow Jones Indices told the Journal that prices will likely keep going up unless this changes.

“Until inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising,” he said. [WSJ]  – Eddie Small


Related Articles

arrow_forward_ios
With home sellers also staying on the sidelines amid the public-health crisis, the market is now giving rise to bidding wars. (iStock)

The return of the bidding war

The return of the bidding war
102 Prince Street and Jho Low (Credit: Modlin Group; Low by Michael Loccisano/Getty Images for New York Times)

Jho Low’s former Soho condo sells at a discount

Jho Low’s former Soho condo sells at a discount
(Credit: iStock)

Loan applications to buy homes rise for fifth week

Loan applications to buy homes rise for fifth week
For the first time in six weeks, the number of Manhattan homes that went into contract increased. (Credit: iStock)

Manhattan home deals jumped 52% last week

Manhattan home deals jumped 52% last week
An institutional investor’s sale of a 7 percent stake in an exchange-traded real estate fund reveals deep concerns about the sector. (Credit: iStock)

Mystery investor dumps big stake in real estate fund

Mystery investor dumps big stake in real estate fund
Zillow CEO Rich Barton (Credit: Barton by Steve Jennings/Getty Images for TechCrunch; iStock)

Zillow relaunches iBuying program

Zillow relaunches iBuying program
Companies across the U.S. are warming up to the idea of remote working. Some employees who live in expensive regions like the San Francisco Bay Area, figure they might as well move someplace cheaper. (Credit: iStock)

The exodus: A rise in remote working could crater expensive housing markets

The exodus: A rise in remote working could crater expensive housing markets
The United States’ housing policy response to the coronavirus crisis has “significant gaps” that leave most renters vulnerable (Photo by Andrew Lichtenstein/Corbis via Getty Images)

TRD Insights: Most renters at risk despite aid

TRD Insights: Most renters at risk despite aid
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...