As strong housing demand continues to fight the shortage of residential properties, US housing price growth in April accelerated at the fastest rate in three decades.
Data on Tuesday showed that the Standard & Poor’s Case-Shiller National House Price Index, which covers all nine population census departments in the United States, rose 14.6% year-on-year in April. The report stated that this was the “highest reading in more than 30 years” after the 13.3% annual growth in March.
At the same time, the composite index of 20 cities covering US metropolitan areas such as Dallas, Miami, New York and San Francisco rose 1.6% month-on-month and 14.9% year-on-year.
Economists surveyed by Refinitiv said that this is the largest annual increase since December 2005, and the expected annual increase is 14.5%.
Phoenix, San Diego and Seattle had the highest year-on-year growth among the 20 cities in April.
“The performance in April was truly extraordinary,” said Craig Lazzara, managing director of S&P Dow Jones Indices and global head of index investment strategy.
Although part of the boom is due to demand for suburban housing related to the pandemic, he said it may also “represent the acceleration of purchases that will happen anyway in the next few years.”
As Americans took advantage of record low mortgage interest rates and snapped up homes in the suburbs, house prices in the United States soared last year. This demand, coupled with tight housing supply, pushed prices up to record levels. Earlier this year, the sharp rise in timber costs further exacerbated the situation.
Economists say that soaring house prices are deterring first-time home buyers, but some expect that demand for suburban properties will decline as fears about the pandemic fade.
There are also some signs that housing stocks are beginning to increase.The U.S. Department of Commerce said last week New home supply Homes for sale increased by 15,000 to 330,000 in May, a year-on-year increase of 5.8%. At the current sales rate, this represents 5.1 months of supply, up from 3.6 months in January.
Matthew Speakman, an economist at Zillow, said: “The rise in inventories in recent weeks suggests that these hot market conditions may begin to take a breather.” “But there is still a long way to go to restore balance in the market. It’s still the way to go, and there are few signs that house price increases will start to fade anytime soon.
Rise House price It also attracted the attention of Fed officials.
This week, Boston Fed President Eric Rosengren said, Tell the financial times The United States cannot afford the “boom and bust cycles” of the real estate market that may threaten financial stability. He said it is common for cash-only buyers to have the upper hand in bidding competitions in Boston.
Other Fed officials, including Dallas Fed Chairman Robert Kaplan, have urged the Fed to reassess its support for the real estate market by purchasing $40 billion in agency mortgage-backed securities each month.