S&P/Case-Shiller: Home Prices Up 5.7% in January
Home price appreciation in metropolitan areas in the United States kept pace with recent gains in the first month of the year as inventory remained low. The S&P/Case-Shiller 20-City Composite Index increased by 5.7 percent in January as compare from last year. This was roughly in line with most economists' expectations.
David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, stated that despite an increase in single-family home construction in February, the country was still not making enough new residences. He added that this was the segment of housing that will drive the economy further, according to a report from The Wall Street Journal.
Home prices rose very rapidly at twice the rate of inflation. Blitzer noted that there was little supply and there was only four to five months inventory in the market, which he believed was low. Prospective buyers and their real estate agents will survey other areas for better deals.
Zillow Chief Economist Svenja Gudell stated that most low-income buyers were having a hard time finding a property that matched their needs and budgets, but there was never much to worry about in housing when looking at the big picture. She noted that economic growth has not been overwhelming, but it had been consistent. She believed that as long as wages and job opportunities kept rising, the housing market will continue to be fairly stable and healthy.
Home price appreciation in the major cities went above the previous month's increases. Portland, Oregon, saw home values soar to 11.8 percent, compared with an 11.4 percent in December. On the other hand, Seattle and San Francisco made 10.7 percent and 10.5 percent increases, respectively, both exceeding growth in December. The S&P Case-Shiller U.S. National Home Price Index, which measured all nine U.S. census areas, increased 5.4 percent year over year last January, according to a feature from CNBC.