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Home prices in the Northwest are the worst in the nation, here's why

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Home prices in the Northwest are the worst in the nation, here's why

While most home prices in the U.S. rose modestly in June, the Northwest experienced a double-digit price hike.

On Tuesday, The Standard & Poor's CoreLogic Case-Shiller released its 20-city home price index.

In Portland, prices rose at 12.6 percent, 11 percent in Seattle and 9.2 percent in Denver.  

These three cities have topped the list of price gains for the past five months.

In cities such as New York and Washington D.C. they are riding at roughly the rate of inflation, and in Boston less than 5 percent.

Still, nationwide prices are increasing more quickly than income as buyers compete for the dwindling supply of available homes.

This could stifle home sales in the coming months. 


Cities in the Midwest were mixed.

Home prices in Cleveland and Chicago rose 2.5 percent and 3.3 percent, respectively, while in Minneapolis they climbed 5.1 percent, the same as the nationwide pace.

Southern cities saw stronger price gains. Dallas rose 8.9 percent, 7.9 percent in Tampa and 5.8 percent in Atlanta.

There have been a variety of factors that have contributed to this increase.

A growing economy, home buyer demand and a severe shortage of homes on the market.

In Seattle alone, home prices have risen ahead of the the rest of the nation and has increased at twice the national rate. CoreLogic's chief economist, Frank Nothaft stated that the blend of urban and scenic outdoor activities have attracted millennials which has also contributed to the surge. 

The 20-city price index plunged after the housing bubble started to burst in 2006, plummeting by more than a third before prices began to rise again in March 2012.

The Case-Shiller index covers roughly half of U.S. homes and measures prices compared with those in January 2000, creating a three-month moving average.  

 

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