Home prices just smashed another record high in June
Published On Aug 27, 2024, 5:08 AM
Home prices in the U.S. reached a record high in June, increasing by 5.4% compared to the previous year, as reported by the S&P CoreLogic Case-Shiller index. This marks the highest price level amid a continuing housing shortage and high mortgage rates that are affecting affordability. The 10-city composite index also saw a significant rise of 7.4%, with major cities like New York seeing gains of 9%. Despite a slight decrease in the annual price growth rate, the overall trend indicates the housing market remains very competitive and unaffordable for many potential buyers.
Stock Forecasts
ITB
Positive
The consistent increase in home prices driven by a low supply of housing amidst high demand suggests that companies in the real estate and construction sectors could benefit from price escalations in the coming months, provided they can manage supply issues.
XHB
Negative
Given the current affordability crisis and higher mortgage rates, there is potential for homebuilder stocks to face pressure, particularly if demand continues to decline due to buyers waiting for price corrections. This could lead to the underperformance of related sectors.
Related News
A Trump Fix for the Housing Crisis Could Actually Make It Worse
Oct 11, 2024, 12:01 PM
The former president often implies that deportations will bring down housing costs. Reality is more complicated.
Inflation sees the lowest annual rise since 2021
Oct 10, 2024, 1:34 PM
The Consumer Price Index (CPI), the main measure of inflation, increased 0.2% in September, a similar increase consumers saw in August and July, the Bureau of Labor Statistics reported.
Mortgage rates predicted to increase in next few days
Oct 10, 2024, 6:50 AM
Recent falls in rates could come to "an abrupt halt" in the next few days, according to brokers