WASHINGTON – the U.S. house prices climbed in March at the strongest rate in almost three years as a dwindling supply of houses for sale is causing prices to be considerably higher than the income of the growth.
The Standard & Poor’s, CoreLogic Case-Shiller 20-city home price index released Tuesday rose by 5.9 percent in the past 12 months ended in March, the most since July 2014. Home values are still more than double the pace of average hourly wages, making it more difficult for many people to afford to buy a house.
“In the past year, analysts suggested that one factor pushing prices higher was the unusually low inventory of homes for sale,” said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. “People remain in their homes longer than the sale of and the trade.
A stable labour market has the bulk of the question among many would-be buyers, but there are fewer properties on the market. Sales listings decreased by 9 percent in the past year to 1.93 million, according to the National Association of Realtors. The shortage of homes to buy has caused prices to rise sharply in many urban areas.
The largest annual gain was in Seattle, where prices have risen by 12.3 percent. Portland, Oregon recorded a 9.2 percent increase, while Dallas prices were up 8.6 percent.
Of the 20 cities in the index, the weakest gain was in New York City_an area where house prices are already high in comparison with the median income. House prices in the City of New York increased by 4.1 percent in the past year, still much higher than the U.S. average hourly earnings have increased 2.5 percent in the past 12 months, according to the Bureau of Labor Statistics.