US home prices rising 2 times faster than wages

by Jared Lewis June 2, 2017, 1:37
US home prices rising 2 times faster than wages

But the gains were enough to reach a 33-month high, climbing at the strongest rate in almost three years.

Across the 20 major cities tracked by the home price index, Seattle, Portland and Dallas reported the highest year-over-year gains, up 12.3 percent, 9.2 percent and 8.6 percent respectively versus a 20-city average of 5.8 percent. By taking a glimpse into the evolution of the real estate industry over the past few years, data show a 33-month high gain.

The shortage of homes to buy has also caused prices to rise sharply in many other areas.

The rise in prices has been widespread. This more stable financial status encourages Americans to take this important step and purchase their very first house or trade their existing one with a better location.

Svenja Gudell, chief economist for the Zillow website, agrees that the housing market will continue favoring sellers.

Mortgage rates at a six-month low, along with a strong job market and healthier finances, are giving prospective buyers more wherewithal to make purchases. Home prices fell in Cleveland and Tampa, Fla., from the prior month. Month-over-month, the 10-City Composite rose 0.9 percent and the 20-City Composite rose 1.0 percent. The Ten-City Composite posted a 0.9% increase and the 20-City Composite reported a 1.0% increase.

The S&P/Case-Shiller U.S. National Home Price Index is a composite of single-family home price indices that is calculated every month; the indices for the nine U.S. Census divisions are calculated using estimates of the aggregate value of single-family housing stock for the time period in question.

Metro Monthly change 12-month change Atlanta 0.9% 5.5% Boston 1.4% 7.7% Charlotte 1.5% 6.7% Chicago 1.1% 5.1% Cleveland -0.1% 4.3% Dallas 1.2% 8.6% Denver 1.3% 8.4% Detroit 1.3% 7.0% Las Vegas 0.8% 6.4% Los Angeles 1.0% 5.3% Miami 0.3% 6.0% Minneapolis 1.4% 6.8% NY 0.8% 4.1% Phoenix 0.6% 5.6% Portland 1.0% 9.2% San Diego 1.0% 6.5% San Francisco 1.0% 5.1% Seattle 2.6% 12.3% Tampa -1.1% 5.1% Washington 0.8% 4.2%. Dallas, which recently replaced Denver in the top three, reported a 8.6% annual increase in home prices. Home prices in New York City have risen 4.1 percent in the past year, still much higher than US average hourly earnings, which have increased 2.5 percent over the past 12 months, according to the Bureau of Labor Statistics.

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