Tags: Olick | home | prices | expensive

CNBC's Olick: Home Prices Remain Too Expensive for Many

By Dan Weil   |   Thursday, 10 Jul 2014 08:59 PM

Despite the slowdown of home price increases since late last year, homes remain too costly for many would-be buyers, says Diana Olick, CNBC's real estate reporter.

As a result, home sales are still well below last year's levels, she writes on CNBC.com.

The S&P/Case-Shiller index of home prices in 20 major cities climbed 10.8 percent in the year through April, the smallest 12-month increase in more than a year.

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"Despite this national slowdown in price gains, price increases continue to be widespread, with 97 of 100 metros [metropolitan housing markets] posting year-over-year price gains—the most since the recovery began," Jed Kolko, chief economist at Trulia, a real estate research firm, told CNBC.

"Furthermore, asking prices in June rose at their highest month-over-month rate (1.2 percent) in 16 months."

Bidding wars emerged for homes in many markets last year amid a supply shortage. So, "sellers are now completely out of touch with what buyers can stomach, real estate agents say," according to Olick.

Some experts expect that price gains will continue to moderate.

"We’re still expecting prices to appreciate, but at a much reduced rate," Kevin Cummins, an economist at UBS Securities, told Bloomberg. "The amount of homes on the market is still relatively low. You’re likely to see a less-booming pace of prices, and that’s a good thing."

Perhaps that will make homes more affordable for the non-wealthy.

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