Analysts at Nomura point out that the Case Shiller 20-city composite index rose 6.5% y-o-y, slowing slightly from the 6.6% average growth pace in Q1 and while home price appreciation eased slightly in April and May, growth remains well above the average paces in 2015-17.
Key Quotes
“The inventory of existing single-family homes still remains low relative to consumer demand, which has been supported by the strong job market and steady income gains.”
“Especially in low-tier markets, a supply-demand imbalance appears to be acute which can worsen home affordability further.”
“Against this backdrop, we continue to expect firm gains in this home price index.”
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