Home prices records
House prices continue to rise as strong demand is stronger than weak supply.
In America house prices were 16.6% higher than in May last year. This is believed to be the biggest result in the last 30 years of the S&P CoreLogic Case-Shiller report.
According to the official statistics, which were compiled for all cities in America, the annualized composite rate was 16.4% in May, up from 14.5% in April. The statistics for the 20 cities were up 17% year-on-year and the previous month's increase was 15%.
San Diego, Seattle and Phoenix statistically have the highest year-over-year price increases among the 20 cities in May.
"Last month I announced April's figures were 'truly out of the ordinary' and this month I can no longer find the words," said Craig Lazzara of S&P DJI. "Earlier, we had assumed that house prices had risen because of the pandemic, as would-be buyers move from urban flats to suburban homes. It's worth noting that the data that came out in May is still consistent with my statement about the pandemic to this day."
What's more, Charlotte, Dallas, Cleveland, Denver and Seattle, as well as North Carolina, all saw record annual price increases.
However, mortgage rates fell slightly in early May and held in a small range throughout the month.
Demand for homes has weakened over the past couple of months, with high prices being the culprit. However, slowly but surely the inventory of houses for sale has started to increase.
Demand to this day remains high thanks to people who are in the period of buying their own homes. Mortgage rates have fallen again in recent weeks.
"Analysing the situation a couple of months ahead, we expect inventories to rise in autumn as well, deforming the seasonal idea as well as holding the momentum of real estate activity," said Realtor senior economist George Ratiu.
