Home Prices Level Out | Mt Kisco Real Estate
Home prices increases may be leveling out, according to one closely-followed real estate report. In 20 major American cities, home prices this May were about 4.9% higher than May of last year, according to the S&P/Case-Shiller Home Price Index, released Tuesday. That’s the same pace of growth as April, and surprised economists when it fell short of expected growth. Economists predicted a 5.6% year-over-year increase, according to an Econoday survey. Price increases of single-family homes have settled at a steady pace of 4-5% this year, said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. He said he expects price increases to slow over the next two years, as wages rise to catch up with housing costs. “First time homebuyers are the weak spot in the market,” said Blitzer, citing research that high down-payments may be putting off first-time home purchases. “Without a boost in f...