US Home Prices Moderate as Tax Credit Ends

Today’s S&P/Case-Schiller index of property values indicates that home prices in 20 US cities increased at a slower rate in July when compared to one year ago. The increase of 3.2 percent is the smallest year-over-year gain since March and coincides with the ending of a government tax credit.

“The big happening in housing markets right now is the decline in buyer demand and stagnating supply,” said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia. “A huge portion of potential demand can’t afford a home or get a loan.”

Source: Bloomberg

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