Lean Inventory Fueling Home-Price Gains in 20 U.S. Cities
The Space Needle stands past newly constructed apartments in downtown Seattle, Washington, U.S., on Monday, July 21, 2014. The U.S. Census Bureau is scheduled to release new home sales figures on July 24.
Photographer: Mike Kane/BloombergSteady price gains in 20 U.S. cities in May indicate that a tight supply of properties paired with increased demand is boosting home values, according to figures from S&P CoreLogic Case-Shiller on Tuesday.
An shortage of listings is still behind the rapid appreciation of home prices, particularly in high-demand areas such as Portland, Oregon, and Seattle, where values have surpassed pre-recession peaks. Housing demand is supported by a solid labor market, steadily rising wages and low mortgage rates. While lofty asking prices are making it difficult for some Americans to become homeowners for the first time, they’re encouraging owners of more expensive properties to put their houses up for sale, as trade-up demand remains solid.