Home Price Increases to Slow, NJ Lags [AUDIO]
Housing prices in the U.S. have been increasing by double digits recently, but a new analysis shows prices have been slower to rise in New Jersey, and the overall price increases will begin to cool down.
The CoreLogic Case-Shiller home price index gauges 384 U.S. metro areas.
Analyst David Stiff says prices have been rising because of "very strong demand and very little supply."
Their data shows those price increases will slow later this year and into early 2014. Stiff says New Jersey home prices have been a bit slower to rebound than the rest of the country because price corrections here began a little later and a Wall Street hiring slowdown contues to have a spillover effect.
"But going forward, we see moderately strong price appreciation in the New Jersey market."
He says this is not a new price bubble because prices are still far below pre-recession levels.
"Record levels of affordability, a slowly improving job market and very small inventories of new and existing homes for sale will continue to drive U.S. home price appreciation during the summer," Stiff said.