US house price growth slows in April - S&P/Case-Shiller
House price growth in the US unexpectedly slowed down in April, according to the S&P/Case-Shiller National Home Price Index.
The 20-City composite index was up 5.7% year-on-year, down from 5.9% the month before ad below economists' expectations of 5.9%.
Meanwhile, the national home price NSA index covering all nine US census divisions saw a 5.5% annual gain, down from 5.6% in March.
Seattle, Portland, and Dallas reported the highest year-over-year gains among the 20 cities. Seattle led the way with a 12.9% year-over-year price increase, followed by Portland with 9.3% and Dallas with an 8.4% increase. Seven cities reported greater price increases in the year ending April 2017 versus the year ending March 2017.
David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, said: “As home prices continue rising faster than inflation, two questions are being asked: why? And, could this be a bubble?
"Since demand is exceeding supply and financing is available, there is nothing right now to keep prices from going up. The increase in real, or inflation-adjusted, home prices in the last three years shows that demand is rising. At the same time, the supply of homes for sale has barely kept pace with demand and the inventory of new or existing homes for sale shrunk down to only a four month supply. Adding to price pressures, mortgage rates remain close to 4% and affordability is not a significant issue."