US home prices march upward as buyers fight over low supply

Home Sale
The Associated Press

WASHINGTON (AP) — U.S. home prices rose in April from a year earlier, lifted by bidding wars in many cities where would-be buyers compete for a sparse supply of homes.

The S&P CoreLogic Case-Shiller 20-city home price index moved up 6.6 percent from a year earlier, led by outsize gains in Seattle, Las Vegas and San Francisco. All three cities showed double-digit gains.

Prices rose even as home sales fell and mortgage rates rose. Sales of existing homes dropped in April and May and are now running 3 percent below their year-ago level. Fewer homes are available — the supply has fallen 6.1 percent in the past year — and they are selling quickly.

And mortgage rates reached a seven-year high of 4.77 percent in late May before declining this month.

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