Home price data for April shows another record high, the fifth consecutive month of new peaks.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index which covers all 9 US census areas hit its highest reading (188.50), rising 5.5% from a year earlier, but easing from the 5.6% gain for March.
The 10-City Composite annual increase was 4.9% (to 197.19), down from 5.2% the previous month; and the 20-City Composite posted a 5.7% year-over-year gain (to 210.64), down from 5.9% in March.
Month-over-month (before seasonal adjustments), the National Index was up 0.9% in April; the 10-City was up 0.8% and the 20-City gained 0.9%. After seasonal adjustments, the National and 10-City readings were 0.2% and the 20-City was up 0.3%.
“As home prices continue rising faster than inflation, two questions are being asked: why? And, could this be a bubble?” says David M. Blitzer Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
He said that strong demand which outstrips supply, and the availability of mortgages, means that price gains are not restricted…at least for now.
But he noted that they cannot continue higher forever and the questions is what form the change will take; a gentle easing or a painful crash.
“For the moment, conditions appear favorable for avoiding a crash. Housing starts are trending higher and rising prices may encourage some homeowners to sell,” Blitzer said.
“Mortgage default rates are low and household debt levels are manageable. Any increase in mortgage interest rates would dampen demand. Household finances should be able to weather a fairly large price drop,” he added.
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"
Related Blog Posts
Zillow Group report details affordability struggles as real estate demand overwhelms supply Key Takeaways Inventory absorption and home prices are rising so fast that homebuyers -- particularly millennials -- are going over budget and turning to friends and relatives for down-payment help. Buye...
Buying a newly constructed home involves managing a big project that needs a Realtor's help Key Takeaways: Buying a new home is not a slam dunk; there is a process to manage and a myriad of details to oversee. It is important for a buyer to understand both their and the builder's obligations in the process. Wh...
They say that a picture is worth a 1000 words – in real estate, that can be a good thing or a bad thing. Even keeping in mind that real estate agents are not professional photographers, over the years we have seen some real doozies posted on the Internet! Those are the ones that are certainly not going to sell the ho...
7508 Bush Garden Ave,Las Vegas, NV 89129 5 beds 3 baths 2,896 sqft $410,000 Elevated patio overlooks 40-foot pool w/ Jacuzzi. Huge granite kitchen with 7 1/2-ft-long island and sep. breakfast area. Sep. dining rm. Formal living rm. Open concept family room off kitchen. Custom shutters. 3-car garage. Solar...
Typically my clients are relocations and many have never actually been in their home until the day of move in. That can create a unique situation such as timing for arrivals of delivery trucks, buyers not being in the city at the time of close, pet-friendly hotels, etc… I provide information necessary to assist...