Home prices in US rises 6.6% in the second quarter

(iStock)
(iStock)

Boston - Home prices in the US increased 6.6% in the second quarter from a year earlier as buyers competed for a shrinking supply of listings.

Prices rose 1.6% on a seasonally adjusted basis from the previous three months, the Federal Housing Finance Agency said in a statement on Tuesday. In June, prices climbed 0.1% from May, less than the 0.5% average estimate of 12 economists.

The US has been starved for inventory, in part because builders slowed production after the last decade’s property crash and many seniors are choosing to remain in their houses rather than downsize. The supply of previously owned homes on the market at the end of June fell 7.1% from a year earlier, the 25th consecutive annual decline, according to the National Association of Realtors.

“US house prices rose in most states during the second quarter,” William Doerner, senior economist at FHFA, said in the statement.

“New-home sales are climbing but, relative to the overall population, they still remain low from a historical perspective. The tight inventory is a major explanation for why house prices have been increasing every quarter over the last six years.”

The FHFA index measures transactions for single-family properties financed with mortgages owned or securitized by government-sponsored Fannie Mae and Freddie Mac. It doesn’t provide prices.

The national median price of an existing single-family home was $255 600 in the second quarter, up 6.2% from a year earlier, data from the Realtors group show.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

ZAR/USD
16.98
(-0.23)
ZAR/GBP
21.23
(-0.06)
ZAR/EUR
19.15
(-0.17)
ZAR/AUD
11.80
(-0.12)
ZAR/JPY
0.16
(-0.25)
Gold
1774.31
(+0.03)
Silver
18.02
(-0.04)
Platinum
808.00
(+0.25)
Brent Crude
42.78
(-0.79)
Palladium
1914.01
(+0.62)
All Share
54521.90
(-0.17)
Top 40
50179.89
(-0.26)
Financial 15
10150.02
(-0.64)
Industrial 25
76554.73
(+0.52)
Resource 10
50138.02
(-1.24)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1610 votes
I am taking a hit, but should be able to recover in the next year
23% - 2116 votes
My finances have been devastated
35% - 3174 votes
It's still too early to know what the full effect will be
25% - 2297 votes
Vote