Home values in the United States are increasing at twice the rate of the nation’s inflation rate according to Mortgage News Daily. S&P/Case-Shiller released a home value index for January, suggesting that values in the US rose by 5.4% since January 2015, year over year. That rate is the same rate seen in December as well as the whole 3rd quarter of 2015, helping confirm that real estate values are still trending up.
The western region of the United States drove most of the home value appreciation in the nation. Several cities saw 10% home values rise by more than 10 percent. Portland home values rose by 11.8% from 2015 to 2016. The number of US residents who have equity in their home continues to increase as home values rise.
Currently, there is only about a 5-month home inventory supply on the US housing market. Economists believe that a 6-month supply represents a balanced housing sector. With a low number of homes for sale, buyers will need to offer their highest and best offers, driving up home prices. Home inventory still might rise in 2016. In February, single family home start ups were their highest since November 2007.
Source: http://www.mortgagenewsdaily.com/03292016_case_shiller_indices.asp
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