A shortage of previously-owned homes continues to boost the home price in the United States.
The S&P/Case-Shiller 20-city index rose a seasonally adjusted 5.7% in June, the same as in May. While the national home-price index rose 5.8% y/y, up from a 5.7% annual increase in May.
Less supply for previously-owned homes and strong housing demand are the main factors that drive the home price. The gains in home price has been outpaced the increase in wage gains in the recent years. New buyers are not easy to enter the housing market due to the high housing price.
"Both the number of homes for sale and the number of days a house is on the market
have declined for four to five years," S&P Dow Jones indexes managing director David Blitzer said. "Given current economic conditions and the tight housing market, an immediate reversal in home price trends appears unlikely."
Seattle and Portland had the highest year-over-year price gains among the 20 cities, according to S&P CoreLogic Case-Shiller data released Tuesday. While prices in Atlanta, Chicago, Cleveland and New York fell from a month earlier.
“The trend of increasing home prices is continuing,” David Blitzer, said: “Price increases are supported by a tight housing market”