U.S. home prices surge nearly 20 pct in February: media

LOS ANGELES, April 28 (Xinhua) -- Home prices in the United States surged 19.8 percent in February year over year, CBS News has reported, citing the latest S&P CoreLogic Case-Shiller Index.

Economists warned that the steep climb in residential real estate prices during the economic recovery that started in 2020 after the initial COVID-19 outbreak is pushing more middle-class Americans out of the housing market, the report said earlier this week.

Prices are rising chiefly because surging demand for homes far outstrips supply, with housing inventories declining during the pandemic as builders pulled back on construction. Another reason home prices are climbing is that some longtime homeowners have decided to stay put as the pandemic grinds on, according to the report.

House hunters could see some relief later this year as mortgage rates hit their highest level in years; although that raises ownership costs, it also typically leads to softer housing demand, the report added.

"The housing market remains undersupplied, and it will be a sellers' market for some time, but demand should soften with rising mortgage rates, reducing the demand-supply imbalance," PNC Senior Economist Abbey Omodunbi was quoted as saying by the news outlet.