New York, NY, April 1, 2015—The Standard & Poor’s/Case-Shiller 20-city home price index rose 4.6% in January compared with 12 months earlier. This follows a 4.4% rise in December.
In addition, housing inventories have been tight since December. The number of homes for sale in February was equal to just 4.6 months of sales, compared to an average of 5.2 months last year. Six months of supply is typical for a healthy housing market.
As a result of the current market, home prices are rising faster than wages, pushing homes out of financial reach for some potential buyers.