Housing prices in the US rose for the fourth month in a row. Tightening supply and strong demand are considered to be effective in this increase.
Housing prices in the US rose for the fourth consecutive month as demand combined with tighter stocks put upward pressure on prices.
The national price gauge rose 0.7 percent in May from the previous month, according to seasonally adjusted data from S&P CoreLogic Case-Shiller.
This is causing bidding wars in some parts of the country as buyers complain about not enough homes advertised. According to data from Redfin Corp., in the four weeks to July 16, the total number of homes for sale decreased by 16 percent compared to the previous year.
Craig Lazzara, Managing Director of S&P Dow Jones Indices, said on Tuesday, “House prices in the US began to decline after June 2022, and May data supports the last month of the decline to be January 2023. The scope and strength of the May report is optimistic about the coming months. consistent with an opinion”.
The housing market has cooled over the past year as rising borrowing costs put some buyers on the sidelines. On an annual basis, national prices fell 0.5 percent, compared to a 0.1 percent drop in April.
Cities with the most price increases in recent months have shifted from warmer climates to cities farther north. Chicago, Cleveland and New York all announced some of the biggest price increases in 20 cities. On the other hand, for the first time in five years, a cold weather city took the top spot.
The tightening housing supply could continue to make homes quite expensive for some buyers.