This is a syndicated repost courtesy of Online Course Notes For Financial Markets and Banking. To view original, click here. Reposted with permission.
Liquidity moves markets!Follow the money. Find the profits!
According to S&P/CoreLogic/Case-Shiller, home prices grew at 6.6% YoY in April (too bad its near the end of June!). Unfortunately, wage growth is only 2.8% YoY. Home price growth as the weakest April Since 2011.
(Bloomberg) – By Shobhana Chandra – Home prices in 20 U.S. cities continued to advance at a solid, albeit a touch slower, pace in April, reflecting lingering inventory shortages, according to S&P CoreLogic Case-Shiller data released Tuesday.
Highlights of Home Prices (April)
20-city property values index increased 6.6% y/y (est. 6.8%), after rising 6.7% y/y (prev. 6.8%)
National home-price gauge advanced 6.4% y/y after 6.5%
Seasonally adjusted 20-city index rose 0.2% m/m (est 0.4%), the smallest gain since July
The report indicates a respite in the steady acceleration in property values since the end of 2014. Seattle, San Francisco and Las Vegas led the gain among cities posting a year-over-year advance in April.
And Chicago replaces Washington DC as the slowest growing metro area in terms of home prices.
Price gains in this recovery have been supported by healthy demand amid a strong labor market and improving consumer finances. At the same time, there’s a persistent shortage of available and affordable listings, and borrowing costs have risen this year. Property-price appreciation that’s outpacing wage growth also is a headwind for younger or first-time buyers, though a positive for homeowners’ equity.
Did someone mention April?
Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.