A real estate sign is posted in front of a newly constructed single family home, Thursday, June 24, 2021 in Auburn, N.H. U.S. home prices soared in April at the fastest pace since 2005 as Americans bid up prices on a limited supply of available properties. (AP Photo/Charles Krupa)
WASHINGTON (AP) — Prices for U.S. homes rose faster in May than they have in 17 years as surging demand for housing outstripped the supply.
The S&P CoreLogic Case-Shiller 20-city home price index, released Tuesday, soared 17% in May from a year earlier on top of a 15% jump in April. The May increase was the biggest since August 2004.
The hottest markets were Phoenix (where prices surged 25.9%), San Diego (24.7%) and Seattle (23.4%). All 20 cities reported faster year-over-year growth in May than they did in April.
The U.S. housing market has been hot. Many Americans, tired of being cooped up at home during the pandemic, have traded in apartments and small homes in city for bigger houses in the suburbs. The Federal Reserve's easy money policies have also kept mortgage rates near historic lows, pushing up demand for housing.
The supply of houses for sale has been limited, partly because many Americans are reluctant to put their properties on the market and allow would-be buyers to troop through their homes.
But rising prices have pushed many would-be buyers out of the market. The Commerce Department reported Monday that sales of new homes fell in June for the third straight month, sliding to the lowest level in more than a year. Last week, the National Association of Realtors reported that sales of previously occupied homes rose in June, snapping a four-month losing streak.
“Price pressures remain very firm and appear ready to stay that way in the months to come,’’ said Matthew Speakman, economist at the real estate firm Zillow. “Indeed, sharply rising prices do appear to have priced out some home shoppers, particularly those looking to enter the market for the first time, and causing fatigue among would-be buyers. But overall demand for homes remains very firm.’’7 Stocks That Can Help You Profit From Summer Shortages
One of the lingering impacts of the Covid-19 pandemic is the supply chain disruptions that continue to bedevil many sectors. By now, every investor is aware of the global chip shortage that is disrupting many sectors that were projected to have strong growth in 2021.
But there are many more sectors that are being affected by supply chain disruptions. And this affects everything from big-ticket items like cars to everyday items like pet food and even bacon.
The focus of this special presentation is seven companies that stand to benefit from the current disruption in the supply chain. All of these companies delivered strong gains in 2020. Some of them have weakened in 2021, but that was before the full extent of the supply chain weakness was discovered.
As the economy reopens, the shortage of items is likely to continue and become much more notable. When they do, many of these stocks may get overpriced. That’s why now is the time to get in on these stocks that can help you work the supply chain in your favor.
View the "7 Stocks That Can Help You Profit From Summer Shortages"