National index has average up 14.6%.
U.S. home prices rose to a record high in the month of April, as buyers competed for a limited number of homes for sale. A national home price index, which measures average home prices in major metropolitan areas across the nation, rose 14.6% in the year that ended in April, up from a 13.3% annual rate the prior month. April marked the highest annual rate of price growth since the index began in 1987.
Low interest rates in recent months contributed to the home price surge, along with strong demand and a continued shortage of homes for sale. Many homes are receiving multiple offers and selling above the asking price. The median existing-home sale price topped $350,000 for the first time, according to the National Association of Realtors.
Boston Federal Reserve Bank President Eric Rosengren has expressed concern over soaring house prices and the nation’s economic stability. “It’s very important for us to get back to our 2% inflation target but the goal is for that to be sustainable,” he said. “And for that to be sustainable, we can’t have a boom and bust cycle in something like real estate.”
As the Lord Leads, Pray with Us…
- For U.S. economic officials and advisors who are evaluating the nation’s financial stability.
- For those who head federal housing and lending programs as they seek to support homebuyers.
- That the president and his administration would have discernment in policies affecting overall inflation that contributes to home prices.
- For U.S. producers and manufacturers dealing with shortages in materials that impact housing construction.
Sources: Wall Street Journal, Market Watch, Reuters
