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The latest figures in a most-watched home price index still suggests that housing stock is tight and low interest rates for mortgage loans is spurring demand.

Home prices rose 4.3% annually in June, unchanged from the gain seen in May, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.

“More data will be required to understand whether the market resumes its previous path of accelerating prices, continues to decelerate, or remains stable,” said Craig Lazzara, managing director at S&P Dow Jones Indices. “That said, it’s important to bear in mind that deceleration is quite different from an environment in which prices actually fall.”

Gains had slowed slightly in May, so this appears to be a small recovery from the coronavirus-induced setback in home sales in March and April. The 10-City Composite increased 2.8% annually, down from 3% in the previous month. The 20-City Composite rose 3.5% year over year, down from 3.6% in the previous month.

Home prices are being fueled by fierce competition among buyers for a very slim supply of homes for sale. Inventory at the end of July was down 21% annually, according to the National Association of Realtors. Unsold inventory is now at a 3.1-month supply at the current sales pace, down from 3.9 months in June and from a 4.2-month supply in July 2019.

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