Written by Duncan Roberts
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Low mortgage rates and growing demand for homes in the suburbs have driven house prices to record increases. Photo: Shutterstock
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US house price rise at 15-year high
US single-family home prices in 20 key urban markets including Dallas, Miami, New York and San Francisco, rose by 14.9% over the 12 months to April, the highest increase in over 15 years the S&P/Case Shiller composite index reports. Record-low mortgage rates and increasing demand for homes in the suburbs, that may have been sparked to some extent by the covid pandemic, have driven the price surge. But Mark Zandi, chief economist of Moody's Analytics, argues in a column for CNN that “stress lines are beginning to show” and that because “home prices have risen so far, so fast, that they have become overvalued.” The FT, Irish Times and Wall Street Journal have details and analysis.