Home prices nationwide jumped +16.6%, according to latest S&P CoreLogic Case-Shiller National Home Price Index (NHPI). Home prices in West leaped +19.9% from April to May.
Home Price Increases Skyrocketed in May
On top of April’s + 14.8% increase in home prices, the latest S&P CoreLogic Case-Shiller National Home Price Index (NHPI) shot up a record-shattering +16.6% y/y in May.
The month-to-month index leaped +2.14%, the fastest April-to-May increase since CoreLogic began this data series.
Craig Lazzara, managing director and global head of index investment strategy with the S&P DJI, said, “A month ago, I described April’s performance as ‘truly extraordinary,’ and this month I find myself running out of superlatives. We have previously suggested that the strength in the US housing market is being driven in part by reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. May’s data continue to be consistent with this hypothesis.”
10- and 20-City Composite Indexes Soared +16.4% and +17% y/y Respectively
Compared with the last home price peak in 2006, the 10-city composite in 2021 is now +22% higher and the 20-city composite is +27% higher. HOWEVER, when adjusted for inflation, the 10-city composite index is down-5% from the 2006 peak and the 20-city composite is -1% below.
National prices are up +7% from the previous peak in 2006 when adjusted for inflation. BUT Denver’s prices are up an astonishing +94% since 2006 and Dallas prices are up +84% since 2006.
Home Price Growth Ranking of Metro Areas
All cities in the 20-city composite index experienced double-digit home price growth in May 2021.
For the 23rd consecutive month, Phoenix sat at the top of the leader board in May with its fastest home price growth since the spring of 2006. Home prices in Phoenix increased +25.9% in May 2021, 17% points higher than May 2020 home price growth.
Check out May 2021 rankings:
- Phoenix – +25.9%
- San Diego – +24.7%
- Seattle – +23.4%
- Dallas – +18.5%
- San Francisco – +18.2%
- Tampa – +18.0%
- Portland – +17.5%
- Boston – +17.4%
- Denver – +17.4%
- Los Angeles – +17.0%
- Charlotte – +16.9%
- Miami – +16.6%
- US Average – +16.6%
- Las Vegas – +15.5%
- New York – +15.2%
- Detroit – +15.2%
- Washington DC – +14.8%
- Atlanta – +14.3%
- Cleveland – +13.6%
- Minneapolis – +12.8%
- Chicago – +11.1%
Middle- and High-Tier Price Growth Also Hit Historical Highs
Home price growth in the low and high price tiers continued converging in May 2021 as demand for homes at all price points has jumped. Prices of homse within the lower tier leapt +18.5% in May, the fastest price growth in this tier since 2013
Average price growth among medium-tier priced homes came in at +18.1% and prices in the highest tier hit an average increase of +17.5%.
Projections
CoreLogic believes that the housing market and its underlying strength in consumer demand is supported by a significant pool of accumulated savings and solid mortgage underwriting practices.
The company also believes that improvements in the availability of new listings will help take the edge off for prospective buyers regarding home price growth. Therefore, CoreLogic believes home price growth “is likely” to slow a bit by the end of the summer.
Thanks to CoreLogic and HousingWire.
