Home Prices Spike in More than 15 U.S. Cities
It is becoming ever-so difficult to predict and forecast home price appreciation in the U.S. A new report shows that around 20 U.S. cities saw home price spikes that were higher than initial forecasts.
"The 20-city property values index increased 6.8% year-over-year (the estimate was 6.5%), matching the year-over-year gain in February that was the largest since June 2014," according to National Mortgage News.
"The national home-price gauge climbed 6.5% year-over-year, matching February's year-over-year advance that was the biggest since May 2014. The seasonally adjusted 20-city index rose 0.5% month-over-month (the estimate was 0.8%) after a 0.8% gain."
Of the 20 cities with large increases, Las Vegas, San Francisco, and Seattle featured the largest annual growth, according to the report. Unfortunately, younger and first-time home buyers will be feeling the squeeze as a result of the price hikes.
Home price inflation is still not being met by worker pay, making it increasingly difficult for first-time buyers and the younger generation to afford a home.
"Months-supply, which combines inventory levels and sales, is currently at 3.8 months, lower than the levels of the 1990s, before the housing boom and bust," David Blitzer, chairman of the S&P index committee, said in a statement, according to NMN.
"Until inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising."
To learn more about the cities with the highest home price increase, click on the image above.