Home Price Rise May Eventually Push Some Buyers Out of the Market

How is it that even with record low mortgage rates, some potential home buyers may be priced out of the market? Blame a shortage of housing inventory, which has resulted in a steady rise in home prices. According to the S&P/Case-Shiller index, home prices in twenty major cities are up 5.4 percent from a year ago. '5.4 percent is a very healthy clip. The inflation rate in the U.S. has been running at 2 percent or less,' explained David Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. 'These home prices are rising about two and half times faster than the rate of inflation, and there is some risk that people might be eventually priced out of the market.' TheStreet's Rhonda Schaffler has details from New York.