US home prices jumped 6.3 percent from a year ago

WASHINGTON — U.S home prices climbed 6.3 percent in June from a year earlier, as affordability is becoming a greater obstacle for would-be buyers.

The S&P CoreLogic Case-Shiller 20-city home price index rose at a slightly slower pace than the 6.5 percent annual gain in May from a year earlier, according to a report Tuesday. But home values are increasing at more than double the pace of average wage growth, weighing down property sales despite solid demand because of accelerating economic growth and solid hiring.

Mortgage rates are also higher than a year ago, creating another price pressure for would-be buyers. The National Association of Realtors said that sales of existing homes have declined for the past four months. Despite the sales slowdown, inventories remain tight and that has meant that buyers — especially those searching for homes worth less than $250,000 — have scant options.

"Sellers, for now and for the foreseeable future, are still in control in this market," said Aaron Terrazas, a senior economist at the real estate company Zillow.

Home prices in three metro areas have increased by double digits in the past year: Las Vegas (13 percent), Seattle (12.8 percent) and San Francisco (10.7 percent). The smallest annual growth in prices was in Washington, D.C. (2.9 percent), Chicago (3.3 percent) and New York City (3.8 percent).

Must Read

Great Lakes no help for a struggling Trump on road to 270

Aug 15, 2016

Donald Trump needs a place to reset the electoral map, and he seems to be looking at the industrial heartland states on the Great Lakes.

Are France's burkini bans sexist, or liberating?

Aug 17, 2016

Male officials are dictating what women can wear on French beaches _ and people across a wide swath of French society say that's a good thing

Fed minutes: Conditions could 'soon warrant' a rate hike

Aug 17, 2016

Fed minutes: Conditions could 'soon warrant' rate hike, as near-term risks have diminished

Search

Obserworld delivers the most accurate and up-to-date world news for the global audience with a thorough research and in-depth interviews. Discover the world through Obserworld.

Contact us: sales[at]obserworld.com