US Home Prices Surge At Fastest Pace Since July 2014

Tyler Durden's picture

As the latest housing data shows an uptick in sales, Case-Shiller's 20-City Composite index surged 6.19% YoY in September - the fastest rate of gain since July 2014.

As Bloomberg notes, the residential real-estate market is benefiting from steady demand backed by a strong job market and low mortgage rates. The ongoing scarcity of available houses on the market, especially previously-owned dwellings, is likely to keep driving up prices.

Eight cities have surpassed their peaks from before the financial crisis, according to the report.

All 20 cities in the index showed year-over-year gains, led by a 12.9 percent increase in Seattle and a 9 percent advance in Las Vegas (slowest gains in Washington area at 3.1 percent, Chicago at 3.9 percent)

In the past few years, growth in property values has been consistently outpacing wage gains, crimping affordability for younger, first-time buyers.

That could eventually become a headwind to faster price appreciation. For now, though, rising property values are also helping to boost home equity and support consumer spending, the biggest part of the economy.

“Most economic indicators suggest that home prices can see further gains,” David Blitzer, chairman of the S&P index committee, said in a statement.


“One dark cloud for housing is affordability - rising prices mean that some people will be squeezed out of the market.”

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Pool Shark's picture

Not to worry, the Senate Tax Reform bill will cause house prices to plummet.
Just wait for the correction before you consider buying...

MonetaryApostate's picture

I can just see the IRS rubbing their greedy hands together.

Scornd's picture

are they taking bitcoin payments?

starman's picture

Hm, Chinese stocks falling US home prices rising.  Interesting. 

The Real Tony's picture

The lag effect in the American brains. Home prices falling in China means home prices plummet everywhere the Chinese have bought overseas.

Anteater's picture

When the radio is blaring non-stop "Come to our free flipper seminar!

Join our select team! You don't need any money to win!" and every

street intersection has a crappy WE BUY YOU HOUSE CASH!, and a

1930s rambler on blocks and stilts is asking $275, and new 5BR 2BA

homes are converted flophouses with locks on every bedroom door,

THEN you know it's time to sell at the top and run!

Put another way, when +24% YOY  appreciation wakes you up at night

to check your credit score, and next day you're talking to a realtor who

only asks how much cash down do you have, then better shoot yourself

before you end up underwater, and trying to find a juve arsonist.

Pool Shark's picture

Yep, it feels just like the peak of the last bubble.

NAR: "There's never been a better time to buy or sell a home."

Thethingreenline's picture

It is different this time. Massive liquidity. Has a long way to run. Look at Bitcoin.


Pool Shark's picture

Apples and oranges.
In stocks, bonds and Bitcoin; the prices are driven by tiny but fast transactions which set the prices at the margins.

You can't set the price of a house artificially high by overbidding for just a small piece of it; you have to buy the WHOLE thing... it requires FAR more liquidity.

Now that median home prices are at all time highs compared to median income, we are back in bubble land.

Watch out below...

Pool Shark's picture

oh, by the way, another good indicator that you are in a bubble is when people tell you "It's different this time."

XBroker1's picture

Feels like it's just getting warmed up to me.

Rainman's picture

Household homeowner equity of $ 13.3 trillion just passed the levels in 2005 ... and then ..


Seasmoke's picture

House Rich. Cash Poor. American Dream.

Scornd's picture

haha parents and their children have the most income diference lol

Osmium's picture

It's simple.  Buy now or be priced out FOREVER!


zagzigga's picture

But unlike 10-12 years ago, rents are the same or even more than a mortgage payment. Back then rent was half or less of mortgage payment.

Grandad Grumps's picture

Relatively speaking, it seems pretty flat to me.

MuffDiver69's picture

Home prices and top 20 cities in article..Enough said..Perhaps it should be dwelling prices in over priced taxed to death bubbles..

rejected's picture

Home Owner?


Don't pay the tax and see who owns it.  Hint: Banks, Government

You don't own Jack Diddly in Merica.  Your even told how and who you can rent their house to. You are required to have their permit to fix or improve their house,,, then pay higher taxes.

XBroker1's picture

Good luck trying to paint your rental a different color.

Scornd's picture

oh is that what u call freedom?

liqmyace's picture

Yippee, now they can borrow more on their credit cards and pay it off by refinancing their homes....Shame they can't see what's going on, the whole ponzi scheme is designed to get US citizens further into debt.

aliens is here's picture

Mortgage your home to pay off the CC is a bad idea.

zagzigga's picture

Of late I have been hearing the term "cash out refi", "pull the equity out" etc. If you bought a house with a loan, how and what do you cash out?

MonetaryApostate's picture

Debt serfs everywhere are short on CASH!

XBroker1's picture

what do you cash out?

Your common sense. Is this a trick question?

Scornd's picture


Xena fobe's picture

In other news, authorities can't figure out why the homeless population is rising so quickly.

A study found that to house the growing population of the City of Los Angeles, we would have to be adding 100,000 new housing units per year.  Which just about equals the annual immigration rate. 

FreeEarCandy's picture

No. It means they are going to reassess my property taxes and save their pensions. 

aliens is here's picture

What's the point in raising home prices when people can't afford to buy or struggles to pay for the homes?

XBroker1's picture

There has to be a demand at that price or the prices would fall.  I'm often amazed when I see even crappy markets with rising taxes sell homes that I think are overpriced, so you're not alone. The demand has to be there or people would pull the listing or drop the price.

Scornd's picture

you can own a home. just work more.

EnragedUSMCExpat's picture

You cannot own a home that may be seized for non-payment of taxes. Ergo, you don't own one and never will and are merely groundskeepers for the banksters and IRS.

homiegot's picture

To make losers like you cry about it.

ioniancat21's picture

The current home prices are a joke in most places, especially on the coasts. In New York City the prices are so far from reality as prices increased from the 90's by almost 4 times yet salaries stayed stagnant. Only Asian foreigners can buy at these prices yet people constantly tell me to expect more price increases and they clearly have rocks in their heads to think this insanity.

What ever happened to things like "DTI", something that existed when we had Option ARM's and Subprime yet nobody can tell me that with the current prices they make even close to 50% DTI in their dreams, more like 70-80%.

Most of the people I work with can't afford to live in the area they work in, apartments that I have rented in the 90's I can no longer afford. All we have done is gone backwards and I have less now than when I made minimum wages in my teens.

Let this market crash hard and let people get wrecked, the more the better. I want for sale signs on every property my eye can see and squatters everywhere. This market is fake and it needs to be destroyed before real price discovery can begin. Screw my 401 and my pension, it's worthless anyway. It's time for all of us to take a huge bath. At this pace, a reset wiping out all my assets will leave me in a better place than living this charade where I'll be working full time to be homeless....

EnragedUSMCExpat's picture

Moron misery loves company asswipe - take your bath alone. If you had any sense or balls you would cash out your 401 while you still can and buy gold and silver coinage - if that's still legal in the gulag. What a fucking wad, you and your coward ilk are the reason America is fucked.



homiegot's picture

You must be a liberal. Liberals whine about everything. You are what we call a loser.

Clueless Economist's picture

Yeah and Trump will get all the blame and not the Magic Nigger

Scornd's picture

its all my fault for not doing good in shkool.

dont tell absolutly every middle class murican that is seeing gains on their assets since 08 or you will scare the shit out of them. and if thats your whole really are screwed. because it will be your fault for not working, them loosing out on the dip....

Bemused Observer's picture

 As a homeowner, I can tell you that my house is not worth the so-called 'market value', and none of the houses in the area are. It is ludicrous what people are asking, and apparently enough are paying to encourage it to continue. Add the rising property taxes and such, and it starts to look like a losing proposition. We're fine, because we've been here awhile and our costs are low. But anyone trying to carry a quarter-million dollar mortgage and cover the taxes has to make a LOT more than jobs in the area are paying...

I don't think that math works, but that's just my gut feeling. I'm not an expert with a fancy degree, and obviously don't grasp the higher math needed to see how great this is, so it's probably best they don't listen to the likes of me anyway...

Carry on, Captain! Full steam ahead! If they aren't going to fix things, then let them just open up that engine and get us to FAILURE as fast as possible so we can get out of this 'funk' and into re-build mode.

homiegot's picture

Ha ha! I got mine! Fuck all yall.