WASHINGTON (7/24/13)--With home-buyers competing for a limited pool of listings, U.S. house prices climbed 7.3% in the year through May, according to the Federal Housing Finance Agency (FHFA).
Prices rose 0.7% from April on a seasonally adjusted basis, FHFA said in a report released Tuesday (Bloomberg.com and Moody's Economy.com July 23).
Economists had forecast a 0.8% gain in May, said Bloomberg data.
An improving employment environment is attracting buyers to the market for a constricted home inventory--which is causing real estate values to rise, Bloomberg said.
Also, U.S. home values increased 2.4% in the second quarter from the first quarter--the largest gain since 2004, according to a separate report issued Tuesday by Seattle based property-research firm Zillow Inc.
Higher mortgage rates and a limited supply of homes may be holding back home purchases, Bloomberg said.