Coronovirus Finally Slows US Home Price Growth

The novel coronovirus has finally put a brake on domestic price increases in the US

Standard & Poor’s said on Tuesday that its S&P CoreLogic Case-Schiller National Home Price Index reported a 4.5% annualized profit in May, up from 4.6% a month earlier. The 20-city composite reported a 3.7% annual gain, down from 3.9% in April. In March and April, the 20-city composite did not include transactions for Wayne County, Michigan, due to a COVID-19 lockdown due to a delay at its local recording office. The results recall a 4.9% annual gain for BofA Global Research’s national index and 4.1% annualized profit for the 20-city composite.

“May’s housing price data were stable,” Craig J., managing director and global head of index investment strategy at S&P Dow Jones Indix, in a press statement. Lazara said. “Unlike the previous eight months, May’s gains were lower than in April. Although prices have increased in May, in other words, they did so at a dismal rate. To find out whether the May report reverses the previous path of accelerating prices or represents only a slight deviation from a spontaneous trend, more data will clearly be required. “

For the twelfth consecutive month, Phoenix led the 20-city composite, yielding 9% annual profit. Seattle and Tampa reported 6.8% and 6% annualized profits respectively.

“We saw a commensurate growth at the city level. Prices rose in all 19 cities for which we have data but only 3 of them accelerated (as opposed to 12 cities last month and 18 in its first month),” Lajra he said.

The development of the Prado condominium is seen in Pasadena, California, Tuesday, August 15, 2006. Home demand fell sharply in Southern California in July. (AP Photo / Nick UT)

The results reveal a housing market in recovery, following a set of positive figures. In June, current home sales rebounded at a record rate of 20.7% since May, according to the National Association of Realtors. Last week, BofA highlighted five reasons why the housing market has been a “shining star” in the economy as the US emerges from a virus lockdown.

Lajara explains that, “even though prices keep falling continuously, it is quite different from an environment in which prices actually fall.”

The National Association of Realtors (NAR) last week stated a mid-current price of $ 295,300 for all housing types in June, up 3.5% from June 2019, as prices rose in every region, up from 100 for the year. The straight months were marked. Benefit. Meanwhile, inventory remained depressed to a total of 1.57 million units in June, down 1.3% from May, but down 18.2% from a year earlier.

Lawrence Yun, NAR chief economist Lawrence Yun, said in a press statement, “House prices rose during the lockdown and could rise even further due to heavy buyer competition and a severe shortage of supply.” And can be inflated by such circumstances.

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