WASHINGTON (AP) – U.S. home prices rose at a healthy clip in April, though the increase slowed a bit from the previous two months.
The Standard & Poor’s CoreLogic Case-Shiller 20-city home price index climbed 5.7 percent in April, after increases of 5.9 percent in March and February. Those gains were the highest in nearly three years.
Home prices are rising roughly twice as fast as average wages, a dynamic that may eventually stifle sales by thwarting would-be homeowners. Bidding wars among buyers competing for a limited supply of available homes are driving up costs. Low mortgage rates are also encouraging more Americans to buy homes.
Seattle, Portland and Dallas reported the largest year-over-year gains in April. Home prices jumped 12.9 percent in Seattle, 9.3 percent in Portland and 8.4 percent in Dallas.