WASHINGTON (Pakistan Point News / Sputnik - 27th July, 2021) House prices in the United States increased by 18 percent in May from a year ago, the Federal Housing Finance Agency (FHFA) said on Tuesday, indicating demand was still exceeding supply.
On a monthly basis, home prices increased 1.7 percent from April, continuing an unbroken trend for at least the last 18 months, the FHFA price index showed.
"House prices continued their record-setting growth into May," FHFA Deputy Director Lynn Fisher said in a statement. "This trend will likely continue around the country as busy summer home-buying months maintain the pressure being felt in already tight housing markets."
US house prices have risen every year without a blip for nearly ten years now, appreciating even during last year's coronavirus pandemic.
Prices have particularly increased in 2021 due to the strong re-emergence of the economy from the coronavirus pandemic and higher buying capability for Americans empowered by pandemic relief payouts by the government.
The median price for new single-family homes stood at $361,800 in June, versus the average of $428,700. In April, the median was just $341,600.
The housing market is one of the cornerstones of the US economy, accounting for nearly 15 percent of Gross Domestic Product.
