Home prices in America have been rising rapidly. The latest reported growth was faster than at any point in the last three decades. Remember, that includes the Housing Bubble. Mamta Badkar report in the FT:
US home price growth accelerated in April at the fastest pace in more than three decades as strong housing demand continued to come up against a shortage of residential properties.
The S&P Case-Shiller national home price index, which covers all nine US census divisions, rose 14.6 per cent year on year in April, data on Tuesday showed. That followed a 13.3 per cent annual jump in March, and was “the highest reading in more than 30 years,” according to the report.
Meanwhile, the 20-city composite, which covers US metropolitan areas including Dallas, Miami, New York and San Francisco, rose 1.6 per cent from the previous month and 14.9 per cent year on year.
That was the largest annual increase since December 2005 and compared with expectations for a 14.5 per cent yearly increase, according to economists surveyed by Refinitiv.
Phoenix, San Diego, and Seattle reported the highest year-over-year gains among the 20 cities in April.
“April’s performance was truly extraordinary,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices.
While the boom has been driven partly by pandemic-related demand for suburban homes, he said it may also “represent an acceleration of purchases that would have occurred anyway over the next several years”.
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