Hot housing market shows no signs of cooling off, frustrating buyers

New data released today shows U.S. home prices have continued their ascent, reinforcing predictions that prospective homebuyers will face an incredibly competitive market this spring and summer.

According to the new S&P CoreLogic Case-Shiller Indices released today, home prices have continued to rise across the country. Today’s updated data, which covers March 2018, shows that national home prices rose 6.5 percent year-over-year. In addition, two composite indexes of the largest 10 and 20 cities across the nation showed year-over-year increases of 6.5 and 6.8 percent, respectively.

In many ways, it’s not news that home prices are rising, especially in competitive coastal cities. Seattle led the way nationally, with a 13 percent year-over-year price increase in March, followed by Las Vegas (12.4 percent) and San Francisco (11.3 percent).

Data showing such strong appreciation this early in the spring buying season may be disheartening to buyers.

Cheryl Young, senior economist for Trulia, said today’s news is “sure to unnerve” prospective homebuyers.

“First-time homebuyers and those on the bottom end of the market will be especially disheartened as overall home price growth translates to withering affordability,” she said in a statement.

According to an analysis by David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, while today’s housing market is calmer than it was in the early 2000s, he forecasts continued price increases.

“Two figures that stand out are rapidly rising home prices and low inventories of existing homes for sale,” he says. “Until inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising.”