Median home price growth soared to +18.6% in June from 16.8% in May, according to the Case Shiller National Home Price Index.
New Record High Home Price Growth in June
The just released monthly S&P Case Shiller National Home Price Index pointed to a rise of +18.6% in June from +16.8% in May.
Craig Lazarra, managing director and global head of Index Investment Strategy with S&P, said, “The last several months have been extraordinary not only in the level of price gains, but in the consistency of price gains across the country.”
In July, median existing-home prices cleared an increase of +17.8% y/y to $359,900, according to the National Association of REALTORS® (NAR).
All Cities in S&P’s 20-City Index Saw Home Price Growth in June
Not only did all 20 cities included in the S&P 20-City Index see home price growth in July, Lazarra said, “Home prices in 19 of our 20 cities (not Chicago) now stand at all-time highs…June’s +18.6% price gain for the National Composite is the highest reading in more than 30 years.”
Cities in the top spots regarding the highest home price growth included:
- Phoenix – +29.3%
- San Diego – +27.1%
- Seattle – +25%
These three cities have been stand-alone top performers in terms of price growth for more than a year as people continue to relocate due to affordability and remote working flexibility.
Inventory & Affordability Constraints Expected to Ease Home Price Growth By End of 2021
Selma Hepp, CoreLogic’s Deputy Chief Economist said, “While the housing market feels like it has legs that never get tired, inventory and affordability constraints are still expected to put a damper on price growth. Some early data suggests that the buyer frenzy experienced this spring is tapering, though many buyers still remain in the market.”
Hepp believes that we may be seeing a peak in home price growth as inventory begins to increase and buyer competition appears to be quieting in some markets.
Hepp concluded by saying, “Going forward, home price growth may ease off but stay in the double-digits through year-end.”
Thanks to CoreLogic and Inman.