Yesterday, the S&P Dow Jones Indices released their latest results for the S&P CoreLogic Case-Shiller Indices, which are the leading measure of U.S. national home prices. Data released yesterday for September 2017 are showing that home prices have surged across the country for over the last 12 months.
At Realty.com, we specialize in connecting our home buyers with trusted and tested real estate agents who can find the perfect property at the right price. Platforms like Realty are more important than ever for home buyers looking to purchase their dream home, especially in what many experts consider a home market “Supply Crisis”.
The S&P Index has reported a 6.2% annual gain in September, up from 5.9% in the previous month, with Seattle, Las Vegas and San Diego reporting the highest year-over-year gain at 12.9%, 9.0% and 8.2%. Home prices have continued to grow at the fastest annual rate seen since June of 2014, with home prices higher in all 20 cities tracked by the S&P Indices.
David M. Blitzer, the Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices has stated, “Most economic indicators suggest that home prices can see further gains. Rental rates and home prices are climbing, the rent-to-buy ratio remains stable, the average rate on a 30-year mortgage is still under 4%, and at a 3.8-month supply, the inventory of homes for sale is still low. The overall economy is growing with the unemployment rate at 4.1%, inflation at 2% and wages rising at 3% or more. One dark cloud for housing is affordability – rising prices mean that some people will be squeezed out of the market.”
Due to the continued lack of supply, experts like Blitzer are predicting slow recovery in the home construction market which will barely meet home buyers needs. With the increased demand in the market, tools like the ones offered at Realty.com can aid home buyers in finding homes for sale in both the high demand west, as well as the growing east market, where many are beginning to relocate for cheaper living, taxes and home prices.
Prices do not seem likely to drop by much in the upcoming months, and the short supply of homes for sale will drive the market even higher. Now is the right time for any home buyer looking to relocate or purchase property, before low supply and high demand result in higher rates and bidding wars. Mortgage rates are growing and will continue to rise, making housing less affordable the longer buyers wait.
With Realty.com and our trusted agents, we’ll be here every step of the way in helping buyers find their new homes in a vibrant, but turbulent housing market.