Despite the Federal Reserve’s intimation that a bit of inflation is just fine, Americans are being hammered with home price inflation at the fastest rates since the housing bubble in 2006. In April, home prices increased by 8.7%, the fastest rate since June 2006 which saw a 9% rise. Alexandre Tanzi reports at Bloomberg:
San Jose home values appreciated 26 percent year-over-year. Las Vegas, Seattle, Dallas-Fort Worth, San Francisco, Tampa, Atlanta, Charlotte and Orlando all saw double digit growth.
“The spring home shopping season has been a perfect storm of strong demand and tight supply,” said Zillow senior economist Aaron Terrazas. “Sluggish new construction has exacerbated the supply situation and homes that are hitting the market, are moving very quickly once they do. Americans are also in a spending mood, boosted by recent tax cuts and rising wages.”
In 21 of the 35 largest housing markets, home values have surpassed levels reached during the height of the housing boom over a decade ago.
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