Seattle-area home prices were up 1.4 percent in May from April and up 7.4 percent from the previous year according to the newest Case-Shiller Home Price Index numbers. Specific to existing single-family homes sold in King, Snohomish and Pierce counties, the The average price remained the same as April, leading some to speculate that the market is hitting a bit of a price wall. Existing home sales were higher in May, however. The Index Committee singles out a lack of enough first-time homebuyers to propel market prices upward more. "First time buyers provide the demand and liquidity that supports trading up by current home owners." With the potential for rising mortgage rates, which will only keep first-time buyers further away, it'll be interesting to see where things go from here.
· Home Price Gains Lead Housing [S&P]
· Case-Shiller: More Strong Price Gains in May [SB]
· Seattle-area home prices hit wall in May [ST]