US home prices soar at a record pace

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Home prices in the United States reached a new high in June, as buyers competed for a limited supply of available homes. This is the most recent evidence that the housing jobs market remains hot. 

The S & P Core Logic Case-Shiller 20 City Home Price Index increased 19.1 percent year on year in June, the largest increase since 2000. Annual price increases were higher in all 20 cities in June than in May. Except for Chicago, prices have reached all-time highs in 19 of the 20 cities. 

Craig Lazzara, Managing Director of S & PDJI’s Index Investment Strategy, said, ” There are signs that high prices are cooling sales a bit. July pre-owned home sales increased 1.5% year-on-year. Another report showed last week. It’s a much slower pace than last month. And the number of contracts signed for home purchases, leading indicators of final sales, it has fallen for 2 consecutive months.” 

Prices rose the most in June, up 29.3 percent year on year in Phoenix, 27.1 percent in San Diego, and 25 percent in Seattle. The COVID-19 pandemic has prompted many Americans to seek out suburban homes that provide more space and are less crowded than city apartments. However, many other homeowners were hesitant to sell during the pandemic, and new home construction jobs were created in the face of a scarcity of materials, land, and labor. 

As a result, there were only 1.32 million existing homes for sale in July, a 12% decrease from the previous year. However, the number of available homes increased in July compared to the previous month, indicating that high prices are causing more people to sell. 

Another obstacle for homebuyers is competition from investors, such as Wall Street firms that buy single-family homes for rent. In July, nearly a quarter of all existing home sales were full cash sales, up from 16% the previous year. 

Source: Pennsylvania News Today 

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