Supply crunch: US homes prices see fastest growth in 17 years

US home prices in May posted their biggest increase since 2004 led by hot housing markets in Phoenix, San Diego and Seattle.

Prices for homes in the United States rose faster in May than they have in 17 years as surging demand for housing outstripped the supply. The S&P CoreLogic Case-Shiller 20-city home price index, released on Tuesday, soared 17 percent in May from a year earlier on top of a 15 percent jump in April. The May increase was the biggest since August 2004.