The S&P CoreLogic Case-Shiller 20-city house price index rose 0.9% from March to April as a lack of for-sale listings continued to freeze home sales. While the rest of the country saw gradual declines, home prices remained elevated in the Southeast, with Miami seeing the biggest year-over-year increase.
Homebuyer demand is strong despite mortgage rates still hovering in the 7% range, but hesitant sellers are constraining supply and forcing prices to rise yet again after bottoming out at the start of the year, MarketWatch reports.
“It looks like the brief slide in home prices is over,” Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, wrote in a note.
“Aside from offering more support for the view that housing may be bottoming,” he added, “this also means that the degree to which shelter costs are likely to provide relief on the core inflation front may be limited.”
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