According to the report, US housing prices increased for the fourth month in a row as tight inventory coupled with high demand pushed up property values Bloomberg,
Citing seasonally adjusted data from S&P Corelogic Case-Shiller, the publication reported that the national gauge of prices rose 0.7% in April to May.
Bloomberg The report said that buyers are competing for a shortage of listings which has led to a bidding war in some areas of the US.
Interestingly, in the four weeks through July 16, the total number of homes listed for sale declined 16% from a year earlier, according to data from Redfin Corp.
“U.S. home prices began to decline after June 2022, and May’s data reinforce that the last month of the decline was January 2023,” Bloomberg quoted Craig Lazzara, managing director of S&P Dow Jones Indices, as saying.
“The broadness and strength of the May report is consistent with an optimistic outlook for future months.”
Bloomberg The housing market cooled off last year due to rising borrowing costs, which kept buyers on the edge, the report said. On a year-over-year basis, prices across the US were down 0.5%, compared with a 0.1% decline in April.
The top cities for price appreciation have shifted in recent months away from hot climates to cities in the north. Chicago, Cleveland and New York posted the biggest increases in prices among 20 cities, marking the first time in five years that a cold-weather city took the top spot.
Due to tight supply it can be quite expensive for some buyers.
“Limited inventory relative to buyer demand is likely to drive up prices somewhat,” said Hannah Jones, economic research analyst at Realtor.com. “However, these trends vary from market to market.”