Doctor, doctor, here is the news. We have a bad case of affordable housing blues in the US.
According to S&P/CoreLogic/Case-Shiller, home prices grew at 6.6% YoY in April (too bad its near the end of June!). Unfortunately, wage growth is only 2.8% YoY. Home price growth as the weakest April Since 2011.
(Bloomberg) – By Shobhana Chandra – Home prices in 20 U.S. cities continued to advance at a solid, albeit a touch slower, pace in April, reflecting lingering inventory shortages, according to S&P CoreLogic Case-Shiller data released Tuesday.
Highlights of Home Prices (April)
20-city property values index increased 6.6% y/y (est. 6.8%), after rising 6.7% y/y (prev. 6.8%)
National home-price gauge advanced 6.4% y/y after 6.5%
Seasonally adjusted 20-city index rose 0.2% m/m (est 0.4%), the smallest gain since July
The report indicates a respite in the steady acceleration in property values since the end of 2014. Seattle, San Francisco and Las Vegas led the gain among cities posting a year-over-year advance in April.
And Chicago replaces Washington DC as the slowest growing metro area in terms of home prices.
Price gains in this recovery have been supported by healthy demand amid a strong labor market and improving consumer finances. At the same time, there’s a persistent shortage of available and affordable listings, and borrowing costs have risen this year. Property-price appreciation that’s outpacing wage growth also is a headwind for younger or first-time buyers, though a positive for homeowners’ equity.
Did someone mention April?