26 Jul 2016 – Bloomberg
The S&P CoreLogic Case- Shiller released a report in which there was beneficial ground for both sellers and buyers during the selling season, however home prices under performed in 20 cities despite the positive projections made in May.
The report follows a round of more timely data that showed purchases of previously owned homes climbed in June to the highest level since February 2007, from May. A report on new-house sales, also released on Tuesday, showed an increase last month to the highest level in more than eight years.
Steady hiring and cheap borrowing costs are encouraging potential buyers, while hurdles for bigger gains in demand include limited inventory, especially among lower-priced properties. Sustained growth in prices may encourage more current owners to put up their dwellings for sale.
Home prices “are not looking quite as strong as they looked over the last year,” economist and Nobel laureate Robert Shiller said in an interview on Bloomberg Television.
“People should be buying a house if they want a house and not speculating that these price increases will continue,” he said, emphasizing that house price appreciation has averaged less than 1 percent a year over the past century.
Shiller, a Yale University professor who co-created the home price index, expects property price gains will continue, and anticipates the Federal Reserve won’t raise interest rates this year.