U.S. home prices climbed to new heights in April, with seven cities – Boston, Charlotte, Denver, Dallas, Portland, San Francisco and Seattle – setting record highs. Overall, home values are now just 9.6% below their peak of about a decade ago.
Why? Shrinking inventories, healthy job market, and historically low mortgage rates. Meanwhile, overall home ownership has dropped near a 48 year low. But, sales improve as the broader economy has slowly healed. The seasonally adjusted annual sales rate is now 5.53 million, the best pace since 2007. The foundation for much of this growth has been a solid 4.7% unemployment rate that points to a stable period for workers.
Source: S & P/Case-Shiller Index.