Home prices surge as supply shrinks
WASHINGTON — U. S. home prices jumped in February as buyers compete fiercely over a dwindling number of properties for sale.
The S& P CoreLogic Case- Shiller national home price index released Tuesday jumped 6.3 percent in February from a year earlier, matching December’s increase. That jump was the largest in nearly three years.
Steady job gains and rising numbers of millennials moving out on their own has intensified the competition for homes. February’s price gain far outpaces average increases in wages or inflation.
Americans are becoming reluctant to sell their homes as mortgage rates rise, preferring to renovate instead. Others are holding on to their homes because they see few other options available. That’s kept supply tight: The number of homes for sale fell 7.2 percent in March from a year earlier to just 1.67 million.
Sales of existing homes ticked up in March but actually declined slightly from a year earlier as the housing shortage constrained sales.
Homebuyers are getting increasingly aggressive, snapping up homes an average of 30 days after they are listed in March, down from 34 days a year earlier.
There are signs that the supply crunch could ease later this year, as listings have picked up in recent months, only to be quickly sold.