Mixed signals in the U.S. housing market
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Housing demand is rising in the U.S., but house price-rises are slowing. Why this seeming contradiction? The answer is simple: increased housing supply and more new-builds are coming onto the market, so demand pressures can more easily be met.
House prices aren´t rising as fast as they were. The annual increase of 4.26% y-o-y in the first quarter 2015 in the S&P/Case-Shiller seasonally-adjusted national home price index (4.34% in real terms) was the lowest since Q3 2012. There was a 4.39% price rise during the year to May 2015 (4.43% in real terms).
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