United States: House prices growth accelerates in April
The S&P/Case-Shiller 20-city composite home price index rose 2.3% in month-on-month terms in April (March: +3.1%).
On an annual basis, house prices rose 21.2% in April, which was better than March’s 21.1% expansion and marked the best result on record. The annual figure was once again led by price growth in Phoenix, Tampa and Miami—which are benefitting from the increase in remote working brought on by the pandemic.
More recent data from the National Association of Realtors showed that the housing market lost steam at end-Q2, with home sales falling 5.4% month on month in June. In addition, mortgage demand was at a 22-year low in July.
Our panelists see house price growth slowing in H2 and heading into 2023, as rising interest rates choke demand for housing and amid an improved supply of new homes.