US house prices hit fresh high in April, S&P says

25th Jun 2024 14:50

(Sharecast News) - US house prices hit fresh record highs in April, the results of a closely-followed survey revealed.

The rate of increase in the S&P CoreLogic Case-Shiller US National Home Price Index slowed from the 8.3% clip observed during the previous month to 6.3%.

In comparison to the previous month meanwhile, the index rose by 0.3%, the same as in March.

"For the second consecutive month, we've seen our National Index jump at least 1% over its previous all-time high," said Brian D. Luke, Head of Commodities, Real & Digital Assets at S&P Dow Jones Indices.

"2024 is closely tracking the strong start observed last year, where March and April posted the largest rise seen prior to a slowdown in the summer and fall. Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year."

"The second consecutive moderate 0.3% m/m rise in house prices in April could be a sign that the increase in home listings this year has cooled the market," said Thomas Ryan, North America Economist at Capital Economics.

"We think rising supply will eventually be matched by a jump in buyer demand, once the Federal Reserve begins cutting interest rates and mortgage rates fall closer towards our 6.5% year-end target, so for now we are still comfortable with our forecast for a 5% gain in house prices in 2024."

Ryan was anticipating house price increases of 3% in 2025 and 2.5% in 2026.