Case-Shiller: Home Prices Rise 6.2% in September

The S&P CoreLogic Case-Shiller home price index jumped 6.2% in September, beating the 6.1% increase expected by economists polled by Reuters.

David Blitzer, S&P Dow Jones indexes managing director, said the index is rising “at the fastest annual rate since June 2014.”

Added Gino Blefari, president and CEO of Berkshire Hathaway HomeServices: “Home prices are rising across the country for many sound reasons. We have a healthy U.S. economy and an unemployment rate at its lowest level in nearly 17 years. With wages gradually rising and mortgage rates still near historic lows, people are feeling more confident and are looking to buy homes. A tight supply of homes has also contributed to home-price increases but we see a silver lining here. As home equity grows for existing homeowners, we believe more people will list their homes, which should bring greater balance to housing inventory and the market overall.”

Thoughts on Real Estate: A Crowded Market Spurs Buyer Creativity

By Gino Blefari

For many homebuyers, rising prices and low inventory continue to push the market seemingly out of reach. In the CoreLogic Case-Shiller September report, Seattle, Portland, and San Francisco experienced the steepest price hikes with 13.5%, 7.6%, and 7.4% increases respectively since last year. Also, the National Association of REALTORS®  says existing home sales were down 1.7% last month.

Yet despite these market challenges, our research shows that prospective buyers, particularly Millennials, remain positive about the market and are determined to find the home they want. This may be, in part, to the resourcefulness of buyers who have found increasingly novel ways to make their bid stand out.

Our national Berkshire Hathaway HomeServices Homeowner Sentiment Survey released in September found that:

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How July’s Real Estate Trends Affected Buyers

By Gino Blefari

In July, the real estate market faced a housing-inventory challenge with several reports showing an increase in home prices and decrease in home sales. For example, CoreLogic Case-Shiller reported home prices rose 5.6%, setting an all-time high for the sixth consecutive month. And the National Association of REALTORS® said existing home sales were down 1.8%.

These numbers may give some pause at first glance, but considering the basics of supply and demand, it’s clear the number of sales have decreased due to a small pool of available homes paired with a high number of potential buyers on the market. This shows us that home prices that steadily increase box many home seekers out of the market.

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