White House "Concerns Over Soaring Home Prices... Financial Impact Is Positive"

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The White House expressed concerns about rising housing prices but did not present any measures to curb the increase.

On the 25th (local time), White House Press Secretary Jen Psaki stated, "The current rise in home prices is increasing concerns about housing costs and market accessibility," adding that the government is monitoring the housing market.

Psaki's remarks were in response to the release of the Standard & Poor's (S&P) CoreLogic Case-Shiller National Home Price Index for March.

The home price index rose 13.2% compared to the same month last year, marking the largest increase since December 2005.

The housing prices continued their "bull market," surpassing the previous month's 12% increase as well as the market expectation of 12.3%.

Psaki said, "We especially recognize the need to supply new homes at affordable price points." This suggests attention to supply-side issues alongside rising housing prices. Recently, shortages in lumber supply and soaring prices have been noted as obstacles to new housing supply in the U.S.

However, Psaki evaluated that since homes are a "source of wealth" for many Americans, "the financial effects (of rising home prices) felt by some are positive." She instead recalled the Biden administration's support policies for single-family home repairs.

A major foreign media outlet reported that Psaki did not indicate any policy measures to suppress the rise in home prices.

Concerns are growing as U.S. housing prices continue to soar.

Robert Shiller, a Nobel laureate in economics and professor at Yale University who designed the home price index, recently expressed concern in an interview with CNBC, saying, "U.S. home prices have never risen like this in 100 years." He warned that among stocks, housing, and cryptocurrencies, housing is the most overheated.

Professor Shiller described, "A Wild West mentality is emerging among investors."

This content was produced with the assistance of AI translation services.