According to the S&P CoreLogic Case-Shiller National Home Price Index, which is the gold standard in tracking home values, home prices in April rose a staggering 14.6% year-over-year from 2020. This incredible surge comes on the heels of a 13.3% year-over-year increase in March. Craig Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices stated, “April’s performance was truly extraordinary. The 14.6% gain in the National Composite is literally the highest reading in more than 30 years of the S&P CoreLogic Case-Shiller data.”
The twenty-city composite yielded increases in every city, with five cities, Charlotte, Cleveland, Dallas, Denver and Seattle having their largest annual gains ever. Lazzara noted that the data clearly supports what many analysts continue to point out: the strength in the U.S. housing market is being driven in part to the reaction to the COVID pandemic, with potential buyers moving from urban apartments to suburban homes. Selma Happ, Deputy Chief Economist at CoreLogic added, “Elevated buyer demand, coupled with lacking for-sale inventories, will continue putting pressure on prices, which are likely to remain at double-digit increases through the third quarter of 2021.” Based on this report, and analysts’ views, it looks like home prices will continue to rise for the foreseeable future.
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