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.

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Stock Forecasts

ITBView ITB chart on TradingView

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.

XHBView XHB chart on TradingView

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.

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