US HOME PRICES INCREASE

According a recent Bloomberg keep rising.

Home prices in 20 U.S. cities rose in September by the most in more than three years, indicating resilient demand at a time of persistently scarce inventory, according to S&P CoreLogic Case-Shiller data released Tuesday.

HIGHLIGHTS OF HOME PRICES (SEPTEMBER)

  • 20-city property values index increased 6.2% y/y (est. 6%), most since July 2014, after gaining 5.8% y/y
  • National home-price gauge rose 6.2% y/y
  • Seasonally adjusted 20-city index advanced 0.5% m/m (est 0.3%)

Key Takeaways

The residential real-estate market is benefiting from steady demand backed by a strong job market and low mortgage rates. The ongoing scarcity of available houses on the market, especially previously-owned dwellings, is likely to keep driving up prices. Eight cities have surpassed their peaks from before the financial crisis, according to the report.

In the past few years, growth in property values has been consistently outpacing wage gains, crimping affordability for younger, first-time buyers. That could eventually become a headwind to faster price appreciation. For now, though, rising property values are also helping to boost home equity and support consumer spending, the biggest part of the economy.

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