US Home Price Appreciation Slowest Since January As “Affordability” Issues Loom

Following April’s modest slowdown in home price appreciation (albeit still at record highs), Case-Shiller’s 20-City Composite continued to decelerate (modestly) in May, rising 6.51% YoY (weakest since Jan 2018).

 

A deluge of dismal housing data recently is modestly confirmed by the always lagged Case-Shiller price index which hit a new record high…

But is seeing annual growth rates slowing (weakest since January 2018)…

Recent reports have shown the weakest pace of housing starts in nine months, fewer construction permits and the slowest rate of new-home sales since October.

After seasonal adjustment, Seattle had the biggest month-over-month rise at 1.4 percent, followed by Phoenix with a 0.8 percent increase, however, home prices fell in New York and Detroit from the prior month.

“Affordability — a measure based on income, mortgage rates and home prices — has gotten consistently worse over the last 18 months,” David Blitzer, chairman of the S&P index committee, said in a statement.

“All these indicators suggest that the combination of rising home prices and rising mortgage rates are beginning to affect the housing market.”

Seattle, Las Vegas and San Francisco led gains, with all cities posting an advance on-year.

 

via RSS https://ift.tt/2O0iWfz Tyler Durden

Leave a Reply

Your email address will not be published. Required fields are marked *