National home prices jumped +18% y/y in July, an all-time high.
Overall Annual Growth in Home Prices Hits Record High
According to the latest CoreLogic Home Price Index (HPI) Report, home prices in the US rose +18% y/y in July 2021.
Compared with the July 2020 HPI gain of +5.3%, this July 2021 HPI gain of +18% y/y was the highest 12-month gain since CoreLogic began this series in 1976.
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Home Prices Flying Highest in the West
While home prices climbed at an average of +18.6% y/y in every metro, check out these year-over-year home price jumps:
San Diego +25%
San Francisco +22%
Las Vegas +20%
These home price jumps in June 2021 represent the largest surge in home prices since 1988.
State-Level Appreciation Rates in July 2021
Here are the five highest and lowest appreciating states forCoreLogic’s HPI year-over-year growth in July 2021:
- Idaho – +33.6%
- Arizona -+28.4%
- Utah – +25.7%
- Montana – +23.5%
- Nevada – +22.4%
- National Average – +18.0%
- Alaska – +10.2%
- South Dakota – +8.8%
- New York – +8.3%
- North Dakota – +6.1%
- Washington DC – +5.9%
HPI Growth by Price & Property Type Tiers
All four of the individual home-price tiers that CoreLogic analyzes for this report saw the highest price growth rates since the inception of this reporting.
Take a look at how price growth varied by price tier:
- Lowest price tier – +22.1% y/y
- Low-middle price tier – +20% y/y
- Middle- moderate price tier – +19.9% y/y
- High price tier – +19.1%
You’ll note the difference in these percentages is lessening. CoreLogic sees this lessening or converging as a “suggestion” that housing supply is restricted at all price points.
You’ll also note that detached (freestanding) property types appreciated in prices nearly double that of attached (condos/townhomes) properties. Detached properties appreciated +19.7% in July, the highest in the history of the index, and attached properties appreciated +11.6% in July, the highest price appreciation of attached properties since 2006.
Supply – Demand Imbalance Won’t Be “Fixed” Over Night with a Click
According to CoreLogic, 65.8% of potential homebuyers across all ages strongly prefer standalone, detached properties. CoreLogic estimates that the single-family market will be undersupplied by 4.35M units by 2022.
Frank Martell, President and CEO of CoreLogic, said, “This lack of supply is unlikely to be resolved over the next 5 to 10 years without more aggressive incentives for builders to add new units.”
Likewise, “This price gain has far exceeded income growth, and, in the coming months, this (erosion of affordability) will temper demand and lead to a slowing in price growth.”
Thanks to CoreLogic and Bloomberg.