Case-Shiller and FHFA both recently reported their highest annual rates of appreciation on record.
Cash-Shiller reported a 16.6% year over year growth in May – significantly higher than the 14.8% growth in April.
This is the highest annual increase Case-Shiller has ever recorded.
In Case-Shiller’s 20 City Composite, these cities led the way in appreciation:
Phoenix at 25.9% Appreciation
San Diego at 24.7% Appreciation
Seattle at 23.4% Appreciation
Per Core Logic’s Chief Economist Selma Hepp,
“While sustained spurts of home price growth are keeping economic watchers on their toes, underlying strength in consumer demand
remains supported by a significant pool of accumulated savings and solid mortgage underwriting. Both are markedly different than the
home price run-up seen in 2005. Nevertheless, improvements in availability of new listings will help release the tremendous pressure
that competing buyers have put on home prices and home price growth, which is likely to slow by the end of the summer.”
We hear every day from prospective clients that want to wait
to buy for the market to crash.
None of the fundamentals support this happening
and rates are expected to continue to rise.