A data released on Tuesday revealed that home sales prices in the United States moved up 5.3 percent in November which indicates a growth streak which the economists warned is posing a threat to affordability, mostly in the coastal markets.
The hot home sales market results from a solid hiring spree, shortage of houses in the market as well as low mortgage rates.
The S&P/Case-Shiller U. S. National Home Price Index revealed that, in November home sales prices climbed 5.3 percent at a seasonally adjusted rate on a year on year basis.
The pace was little speedier than the 5.1 percent yearly growth noted in October.
The largest metro areas in the U. S saw the quickest growth in sales price compared to the entire nation. The index which tracks twenty key metro areas saw a 5.8 percent yearly growth in November and the ten city index noted a yearly gain of 5.3 percent.
For the first time homebuyers, high student debt loads and higher rents along with stagnant wages acted as a drag. A real estate data tracking firm predicted that affordability will go down in this year mainly for the lower and the middle income families. In case this becomes a continued trend, the lower priced house markets will pull maximum buyers predicts the economists.
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