United States home prices rose at 6.2% their fastest for three years. They have been boosted by a shortage of listings, according to new data.
The Standard & Poor’s CoreLogic Case-Shiller national home price index for September 2017 showed its largest annual gain since June 2014. The rate was 0.3% up from the previous month.
Miami, the nearest city to Cape Coral that is included in the index, rose 0.6% in August to produce a 5% annual rise.
United States home prices rose in all cities in the 20-City Composite index, as buyers paid more because there are so few properties on the market.
David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, says, “Home prices continued to rise across the country with the S&P CoreLogic Case-Shiller National Index rising at the fastest annual rate since June 2014.
Higher home prices
“Home prices were higher in all 20 cities tracked by these indices compared to a year earlier; 16 cities saw annual price increases accelerate from last month.”
Most economic indicators suggest that home prices can see further gains, he says. “Rental rates and home prices are climbing, the rent-to-buy ratio remains stable, the average rate on a 30-year mortgage is still under 4%, and at a 3.8-month supply, the inventory of homes for sale is still low.
“The overall economy is growing with the unemployment rate at 4.1%, inflation at 2% and wages rising at 3% or more.
“One dark cloud for housing is affordability – rising prices mean that some people will be squeezed out of the market.”
The Case-Shiller national index stood at 195.51, which is 5.9% over its previous peak. It covers around half of United States homes. It compares prices to those in January 2000 and creates a three-month moving average.