US Home Prices Surge At Fastest Pace Since July 2014

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.”

Comments

Anteater Tue, 11/28/2017 - 09:18 Permalink

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 everystreet intersection has a crappy WE BUY YOU HOUSE CASH!, and a1930s rambler on blocks and stilts is asking $275, and new 5BR 2BAhomes 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 nightto check your credit score, and next day you're talking to a realtor whoonly asks how much cash down do you have, then better shoot yourselfbefore you end up underwater, and trying to find a juve arsonist.

Pool Shark Thethingreenline Tue, 11/28/2017 - 10:04 Permalink

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...

In reply to by Thethingreenline

rejected Tue, 11/28/2017 - 10:21 Permalink

Home Owner?BwahahahahahahahahahahahahahahahahahahahahahahahahaDon't pay the tax and see who owns it.  Hint: Banks, GovernmentYou 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.

liqmyace Tue, 11/28/2017 - 10:24 Permalink

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.

Xena fobe Tue, 11/28/2017 - 11:09 Permalink

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. 

ioniancat21 Tue, 11/28/2017 - 12:15 Permalink

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....

Scornd Tue, 11/28/2017 - 13:31 Permalink

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 family....you really are screwed. because it will be your fault for not working, them loosing out on the dip....

Bemused Observer Tue, 11/28/2017 - 14:32 Permalink

 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.