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Home Prices on the Rise for February

Posted by Staff Reporter on May 04, 2016 10:11 AM EDT
Realtors Lower Housing Market Sales Forecast more big
SAN FRANCISCO - JUNE 06: Rows of houses stand in front of the Golden Gate Bridge June 6, 2007 in San Francisco, California. The National Association of Realtors announced today that it is lowering its forecast of the U.S. housing market as home sales continue to be weak. The NAR predicts that existing home sales will drop 4.6 percent to $6.18 million instead of 2.9 percent as previously forecast and new home sales are expected to slip 18.2 percent to 860,000 compared to the previous prediction of 17.8 percent. San Francisco has seen an 11 percent increase in inventory of properties listed for sale. (Photo : Justin Sullivan/Getty Images)

The prices of homes in twenty metropolitan areas in the United States reportedly rose for February, according to data from S&P Dow Jones Indices, as reported on CNBC.com. The primary index for homes, the S&P/Case-Shiller 20-City Composite Home Price Index, had increased by 5.4 percent for February 2016.

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This increase was still below the 5.5 percent increase projected by analysts. This increase was confirmed by S&P Dow Jones Indices Committee Chairman David M. Blitzer. Blitzer said, "Home prices continue to rise twice as fast as inflation, but the pace is easing off in the most recent numbers. The year-over-year figures for the 10-city and 20-city composites both slowed, and 13 of the 20 cities saw slower year-over-year numbers compared to last month."

The largest price increase was in Portland, OR as prices rose by 11.9 percent compared to the previous year's numbers. Following close behind were Seattle, WA and Denver, CO, with 11 percent and 9.7 percent increases from the previous year respectively.

The increase in prices, according to Blitzer, as well as the pace of new single-family home construction, is still an issue throughout the United States. He also said that the visible supply of homes available in the market is still low at 4.8 months available inventory, as per the last report released by the firm.

The Home Price Index showed that overall, the prices of homes rose by 5.3 percent from February 2015. According to a report from the Wall Street Journal, the aforementioned 10-city index had increased by 4.6 percent from February 2015.

Blitzer added, "Homeowners looking to sell their house and trade up to a larger house or a more desirable location are concerned with finding that new house. Additionally, the pace of new single family home construction and sales has not completely recovered from the recession."

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