- It’s a sellers’ market this home buying season as low inventory and strong demand increases competition.
- Robust consumer fundamentals such as job and income growth continue to fuel housing demand despite hot prices.
- Seattle, Portland, Ore. and Denver are the hottest markets, with Seattle posting its 13th straight period of double-digit price growth.
Today’s S&P CoreLogic Case-Shiller National Home Price Index was up again with a 5.8% increase over last year, making February’s index the highest in 32 months. Low inventory continues to underscore the narrative of housing market. Strong demand bolstered by income and job growth sets the stage for intense competition and continued price growth in the housing market. Consumers are likely to also take advantage of mortgage rates as they remain low. While the housing market looks to be recovering, these high prices impact the affordability of homes, directing the strongest headwinds towards starter-home buyers.
The 20-City Composite is also up from January, posting a 5.9% year-over-year increase. Cities in the Pacific Northwest remain hot with Seattle and Portland, Ore. leading year-over-year price increases. Seattle hit 12.2% increase, which was the 13th straight month of a double digit increase in home values. Dallas follows Seattle and Portland with an increase of 8.8% year-over-year.