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
Veterans, are you tired of finding the perfect home, only to make an offer and get beat out by a cash buyer? Don't give up hope! You can still move into the Las Vegas home of your dreams this summer courtesy of a new home builder that supports our troops. For the rest of the month of June, Richmond American Homes of L...
Young Americans are delaying homeownership because they're burdened with student loan debt, waiting longer to get married and have kids, and spending more on renting. Some are still living with their parents — especially in certain parts of the country. Waiting longer to buy a home means there's...
It seems our poor Veterans are getting hit from all sides these days. From long waits to receive urgent medical care, to decreased retirement benefits, to cutbacks on funding for new recruits, Veterans are among the least appreciated members of our society. And this appalling neglect seems to extend to home buying as...
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...
You can unknowingly sabotage your home financing goals by making some obvious and not-so-obvious moves with your finances. Check out the list below to see if you know the top 10 things NOT to do when you are in the process of buying a home or refinancing. Do Not: Transfer money between accounts, unless receiving co...