April 2021 S&P CoreLogic Case-Shiller Index jumped +14.6% y/y, highest price growth rate since beginning of index series. Month-to-month index surged +2.09%, strongest March-to-April increase in history of this data

April’s S&P CoreLogic Case-Shiller Home Price Index (HPI) Hits Highest Growth Rate Since Index Began

The April 2021 S&P CoreLogic Case-Shiller Home Price Index hit its highest level ever, +14.6% y/y.  This year-over-year home price growth rate of +14.6% has not been seen since 2005.

On a month-to-month basis, the HPI surged +2.09%, the strongest March-to-April home price increase since this data began being tabulated.

CoreLogic Points Out Housing More Affordable Now Than 15 Years Ago

CoreLogic has been quick to point out that despite this record setting home price growth rate of +14.6% in April, housing is more affordable than it was 15 years ago.

How is this possible?  CoreLogic reminds us that current mortgage rates are more than -50% lower today than they were in 2006 when home price levels relative to household incomes were at similar levels.

These lower interest rates in 2021 translate into lower ratios of mortgage payments to monthly household income.  For example, the April 2021 CoreLogic Market Risk Indicators noted that the share of metro areas with more than a 75% risk of y/y price decline dropped to only 0.2% compared to the risk of 13.3% in April 2006.

CoreLogic’s 10- and 20- City Composite Indexes Also Surged in April

April 2021 home price growth is now at its highest rate since CoreLogic initiated its HPI in 2005.  Its 10-city composite was up +14.4% and its 20- city composite was up 14.9% y/y.

Compared to the HPI’s highest peak in 2006, CoreLogic’s 10-city composite is +19% higher now and its 20-city composite is +24% higher when not adjusted for inflation.  With an inflation adjustment, the 10-city composite is -6% below the peak in 2006 and the 20-city composite is -2% below.

All Price Tiers Averaged Double Digit Home Price Growth in April

The largest home price increases in the lower price tier included:

  • Phoenix – +23%
  • Seattle – +20%
  • Atlanta – +19%
  • San Diego – +19%
  • San Francisco – +15.1%
  • New York – +14.3%

The largest home price increases in the high price tier included:

  • San Diego – +24% in April 2021
  •       (San Diego – +19% in April 2020)
  • Seattle – +16.2%

Thanks to CoreLogic.

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