Home Price Gain In The US Shrinks In Jan 2019
The price of homes in America, in January, has shown a minimal increase in nearly 4 annual years according to S&P Case-Shiller. Although the house prices are rising, the sellers have no gain as the demand is very low and very few buyers are there in the market. According to a nationwide data published by S&P CoreLogic Case Shiller, which is a price index, the prices rose only 4.3 % annually in January, whereas in December, the prices rose to 4.6%.
David Blitzer, MD, and Chairman of S&P Dow Jones Indices, pointed out that, previously such a slower rise in prices was in April 2015, he also said that the 16 cities that were tracked in the list of 20 cities the price gain in January 2019 were much smaller than price gains in January 2018. He further pointed out that only Phoenix has seen some appreciation in price.
San Francisco, annual price shrink to 1.8% from 10.2% and in Seattle, the price gains annually shrank from 12.8% to 4.1%. Phoenix, Las Vegas, and Minneapolis were the three cities that saw the largest gains. The prices in January were up 10.5 %, 7.5% and 5.1% for Las Vegas, Minneapolis, and Phoenix respectively.
The mortgage rates last year only rose just 5% on 30 years fixed, in November. After which, the rates began to decline. The data shown by the S&P Case Shiller about the prices in January is showing the sales closed in the previous 3 months. Since January, the rates have further fallen down to 4.28% as of March. The sale market of single-family homes has fallen gently downwards from 2017 fourth quarter until January of 2019, before rising again in February of 2019, according to Blitzer. It is yet to be seen if the low prices raise the demand in the consumers.