US House Prices Slow Down Due to Lower Demand

US housing price growth slowed to just 0.2% in the first three months of 2014, latest figures show.

According to the S&P/Case-Shiller index, the slowdown in growth compared with the previous quarter was partly caused by tighter bank lending regulations.

Further compounding the problem is rising student loan debt, which has discouraged first-time buyers.

Nationally, US home prices are still up 10.3%, compared with a year earlier.

“The year-over-year changes suggest that prices are rising more slowly,” said index chairman David M Blitzer in a statement.

“Among those markets seeing substantial slowdowns in price gains were some of the leading boom-bust markets including Las Vegas, Los Angeles, Phoenix, San Francisco and Tampa,” he added.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza