Home prices rise in region but at slowest pace in US

Its 20-City Composite index, which tracks the nation's largest cities, gained 5.6 percent year over year, up from 5.2 percent the previous month.

The index, which measures all nine US census divisions, reached a 30-month high in home prices. Seattle led at 10.8 percent, followed by Portland, Ore., at 10 percent.

Home sales and home prices data and reports.

For his part, Ian Shepherdson, chief economist at Pantheon Macroeconomics, said: "Details aside, the key point here is that very low inventory is pushing home prices up quite quickly, so implied real mortgage rates are negative".

More news: Dodge Challenger Demon Will Have a Suspension Made for the Drag Strip

Home prices in New Jersey have lagged behind because of slow job growth and a continued backlog of distressed properties in the foreclosure pipeline.

There will still be concerns surrounding affordability, especially if there is a fresh increase in bond yields, and market nerves are liable to increase if there is any evidence of price increases accelerating over the next few months as fears surrounding a crash would be likely to increase.

According to David Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, 'questions about whether this is a normal housing market or if prices could be heading for a fall are natural'.

"I think 5.4 percent is sustainable rate of appreciation", Goldman said, "in contrast to 10 to 12 percent per year". The December index for single family homes was up 0.5% from November while the condo index was down 0.1%.

More news: Sexton named at out-half in Ireland team to face France

The Case-Shiller index covers roughly half of USA homes.

After seasonal adjustment, the national index rose 0.7% month-over-month, while both the 10-city and 20-city index rose 0.9% month-over month. After seasonal adjustment, all 20 cities posted price gains. Since 1975, the average pace has been 1.3 percent annual growth. While it is true consumer prices are higher today than 20 or 30 years ago, the inflation rate is supposedly much lower.

December's numbers reflect the peak of a sharp rise in mortgage rates following the USA election.

On Monday, the National Association of Realtors released a separate report unexpectedly showing a steep drop in pending home sales in the month of January.

More news: Austrian Court Grants US Request For Extradition Of Ukrainian Tycoon Firtash

"One factor behind rising home prices is low inventory", Blitzer said. That combined with the fact that prices have risen faster than incomes could pose challenges to the market later this year, economists said.


Popular
  • Johnny Manziel returns to court for domestic violence case

    Johnny Manziel returns to court for domestic violence case

    Manziel had a court hearing in Dallas on Tuesday in which the presiding judge lectured him on his responsibilities moving forward. He acknowledged he needs to get his life in order, but said his life is trending upwards. "These are the things I need to do".
    Barack Obama will be in France President race? check out story

    Barack Obama will be in France President race? check out story

    If no candidate wins at least 50 per cent of the vote, the top two candidates go forward to a second round on May 7. But to become the president of France, you have to be, well, French.
    More tests needed on Russian UN ambassador's cause of death

    More tests needed on Russian UN ambassador's cause of death

    CIS member states' ambassadors to the USA and representatives of the United Nations secretariat were the first to sign the book. Russian Federation held a funeral for its long-time ambassador to the United Nations who died suddenly earlier this week.
  • 5 reasons Eden Hazard will chose Real Madrid over Chelsea

    5 reasons Eden Hazard will chose Real Madrid over Chelsea

    Speaking on the matter, Conte said: "My reaction is very sad because this is our job and for sure I am disappointed for him". The matchday programme for the Premier League clash against Swansea is dedicated to Lampard.
    Verizon to begin pilot 5G in 11 U.S.  cities by mid-year

    Verizon to begin pilot 5G in 11 U.S. cities by mid-year

    The company announced Wednesday a plan to rollout the next-generation network to select customers in 11 cities across the U.S. This implementation of 5G technology leverages the close collaboration with Verizon's 5G Technology Forum (5GTF) partners.
    UPS tests van-top delivery drone

    UPS tests van-top delivery drone

    When the drone is docked, it's charging up to make a quick jaunt from the truck on the street to the customer's front door. Using a drone to deliver one package as the driver delivers another would reduce travel time and emissions.
  • Tesla gets downgraded to 'sell' by Goldman Sachs

    Tesla gets downgraded to 'sell' by Goldman Sachs

    Also, VP John Douglas Field sold 1,000 shares of the company's stock in a transaction dated Tuesday, January 10th. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link .
    Instagram Posts Expand to Include Multiple Photos

    Instagram Posts Expand to Include Multiple Photos

    Individual profiles can be tagged in each photo or video, but your caption and location tag applies to the whole collection. You can now combine up to 10 of them into a single post, filling your friends' feeds with a new level of storytelling.
    Iraqi forces free two IS-held villages near Mosul

    Iraqi forces free two IS-held villages near Mosul

    Commanders and experts expect that the fighting in west Mosul could be the bloodiest yet. The Iraqi army claim to have taken it back, and defeated the Islamist terrorists.
  • Iraqi Forces Push Into Western Mosul

    Iraqi Forces Push Into Western Mosul

    Iraqi government forces last month captured eastern Mosul and have now launched an offensive on the western side. One Iraqi colonel leading the operation tells the BBC that western Mosul "is where the real fighting starts".
    Bogdanovic and McCullough off to Washington

    Bogdanovic and McCullough off to Washington

    The pick will likely be in the mid-20's, where the Nets have drafted Caris LeVert and Rondae Hollis-Jefferson in recent years. Nicholson is in his first year with the Wizards after spending the first four years of his career with the Orlando Magic.
    First VP Mehriban Aliyeva to become outstanding statesperson, says Gusman

    First VP Mehriban Aliyeva to become outstanding statesperson, says Gusman

    She has been a member of the New Azerbaijan Party since 2004 and the party's deputy chairwoman since 2013, it said. Graduating as a medical doctor, she also secured a degree in philosophy, defending a thesis on euthanasia.

CONNECT