Key Highlights
- S&P CoreLogic Case-Shiller 20-City Price Index posted +3.5% y/y gain in June
- On monthly basis, home price index +0.2% between May and June
- Separate national index reported +4.3% increase in home prices nation-wide, unchanged from May
Home prices keep rising, according to the latest S&P CoreLogic Case-Shiller 20-city Price index for June 2020. This 20-City Price Index posted a +3.5% increase in home prices for June while its separate national price index noted an increase of +4.3% from May.
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Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, said, “As has been the case for the last several months, prices were particularly strong in the Southeast and West, and comparatively weak in the Midwest and (especially) Northeast.”
Phoenix continued to lead all other markets in the country with an annual +9% price gain. Seattle locked in the second place spot with a +6.5% increase in home prices and Tampa FL settled into third place with an increase of +5.9%.
Realtor.com underlined CoreLogic’s research by reporting that median home list prices increased +10.1% y/y for the week ending August 15. This is the fastest growth in listing prices since January 2018.
Even with record low mortgage interest rates, UBS Financial Services questions how affordable buying a house is these days along side such price increases. Jonathan Woloshin, a real estate and lodging analyst at UBS, said, “The vast majority of home buyers buy on monthly payment as opposed to price. However, our concern is that many are only considering the principal and interest component of their monthly payment as opposed to the “fully loaded” monthly payment (taxes, insurance, etc.) associated with ownership.”
Woloshin found that owning is cheaper than renting in one-third of markets nationwide but, that owning advantage could change as rents continue to flat-line and home prices continue to increase. Ultimately, Woloshin said, “renting (could) become more attractive for a greater number of markets.”
Thanks to realtor.com and S&P CoreLogic Case-Shiller.
Also read: Home Prices & FICO Scores Continue Rising in Q2, Consumer Sentiment in Housing Market Bounced Up in June, Home Prices Mostly Flat in October While Some States Saw Cool Down
