Home prices in April surged 6.3 percent from a year prior, according to the National Association of REALTORS®, and on average, the cost of purchasing a home has been rising more than twice as fast as inflation across the country.
Some are alarmed by the price increases, which are “a little faster than what we can sustain over the long-term,” says David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Sooner or later, the price of housing has to slow down or else we’re going to price everybody out of the market.”
But some markets are seeing more subdued growth. Major metros like Washington, D.C., New York, and Cleveland haven’t seen prices climb as much as the national average. In Washington, home prices were only 1.5 percent higher in March compared to a year earlier, according to data from S&P/Case-Shiller Home Price Indices. Chicago real estate appreciated at 1.9 percent year-over-year, while New York’s home prices were up 2.7 percent and Cleveland at 2.8 percent, according to the report.
On the flip side, Western states are seeing some of the largest annual price increases across the country. Notably, Portland, Ore., saw home prices surge 12.3 percent annually, Seattle’s home prices are up 10.8 percent, and Denver has increased 10 percent.
Source: “As Home Prices Keep Moving Up, Which Cities Are Seeing the Smallest Hikes?” realtor.com® (May 31, 2016)