Tuesday, January 19

U.S. Home Prices Continue to Surge

Washington, U.S. home prices surged 6.3 percent in June from a year earlier, according to a closely watched survey Tuesday.

The S and P Core Logic Case-Shiller 20-city home-price index which covers about half of U.S. homes rose at a slightly slower pace than the 6.5 percent annual gain in May from a year earlier. But home values are increasing at more than double the pace of average wage growth, limiting property sales despite strong demand due to accelerating economic growth and robust hiring.

Mortgage-loan interest rates also are higher than a year ago. The National Association of Realtors (NAR) said sales of existing homes have declined for the past four months. Despite the sales slowdown, inventories remain tight, meaning that buyersparticularly for homes worth less than $250,000 have few options.

Source: Saudi Press Agency