US: Inventory shortages continue to drive home prices higher - Wells Fargo

According to analysts from Wells Fargo, the S&P/Case Shiller Index showed that home prices continued to rise across the US amid tight inventories of homes for sale.

Key Quotes:

“Nationwide home prices rose 0.3 percent in April, increasing 6.4 percent on a year-to-year basis. While a slight moderation compared with March’s 0.4 percent gain, prices have now risen at a 6.0 percent clip or greater for seven consecutive months.”

“Prices continued to rise across the country, with 17 of the 20 covered markets posting higher prices in April. Nine of the cities also saw larger year-to-year increases compared to March.”

“The top six highest year-to-year price increases occurred in the West, where there continues to be a severe short supply of homes for sale amid booming population and employment growth.”