We’ve predicted in recent months that a new Republican administration would be a boon for the U.S. economy, and a fresh report certainly bears that out: Home prices continued their upward climb in February, hitting a record high for the fourth consecutive month.
Citing the S&P CoreLogic Case Shiller Indices, which are used to gauge U.S. home prices, Housing Wire reported in late April that home prices increased by 5.8 percent in February, which followed a 5.6 percent increase in January. Also rising were: A 10-city composite that the CoreLogic indices compile, which rose 5.2 percent annually in February, following a 5 percent rise in January; and, a 20-city composite that increased 5.9 percent in February, up from 5.7 percent in the opening month of 2017.
Cities leading the way were Seattle, Portland and Dallas, whose home prices rose at annual rates in February of 12.2 percent, 9.7 percent and 8.8 percent, respectively. “The Big D” cracked the top three with its increase, replacing Denver.
Accompanying the surge in home prices were increases in other housing indicators, though they were not at quite the same clip as housing prices. Those increases came in the National Association of Realtors’ existing home sales, which grew 5.6 percent in the year ended in March. In addition, home prices also increased month over month, with the national index increasing 0.2 of a percent in February, the 10-city composite rising .3 of a percent and the 20-city composite rising .4 of a percent, HousingWire said.
David Blitzer, S&P Dow Jones Indices managing director, told the magazine:
There are still relatively few existing homes listed for sale and the small 3.8-month supply is supporting the recent price increases. Housing affordability has declined since 2012 as the pressure of higher prices has been a larger factor than stable to lower mortgage rates.