Instant Reaction: S&P/Case-Shiller March Home Prices

The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s S&P/Case-Shiller release on March home prices:

“The solid gain home prices of 6.5% in March added roughly $150 billion to housing wealth during the month. But the continuing run-up in home prices above the pace of income growth is simply not sustainable. From the cyclical low point in home prices six years ago, a typical home price has increased by 48% while the average wage rate has grown by only 14%. Rising interest rates also do not help with affordability. Therefore, more supply is needed to level out home prices. Homebuilding will be the key as to how the housing market perform in the upcoming years.”