Home Prices Rose 16.6% in May, Says Case-Shiller
New York, NY, July 28, 2021-U.S. home prices set a record for the second straight month, according to the latest S&P CoreLogic Case-Shiller Home Price Index. The national index grew 16.6% over the past year, up from 14.8% in April, covering all nine U.S. census divisions. The 10-City Composite annual increase rose to 16.4% from 14.5% in April, and the 20-City Composite grew to 17.0% from 15.0% in April.
The highest gains among the 20 cities came from Phoenix, San Diego and Seattle, at 25.9%, 24.7% and 23.4%, respectively.
According to Craig Lazzara, managing director and global head of index investment strategy at A&D DJI, "Housing price growth set a record for the second consecutive month in May 2021. The National Composite Index marked its twelfth consecutive month of accelerating prices with a 16.6% gain from year-ago levels, up from 14.8% in April. This acceleration is also reflected in the 10- and 20-City Composites (up 16.4% and 17.0%, respectively). The market's strength continues to be broadly-based: all 20 cities rose, and all 20 gained more in the 12 months ended in May than they had gained in the 12 months ended in April. Prices in 18 of our 20 cities now stand at all-time highs, as do the National Composite and both the 10- and 20-City indices.”
Lazzara also notes, "We have previously suggested that the strength in the U.S. 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. This demand surge may simply represent an acceleration of purchases that would have occurred anyway over the next several years. Alternatively, there may have been a secular change in locational preferences, leading to a permanent shift in the demand curve for housing. More time and data will be required to analyze this question.”