Home Prices Continue to Soar, Setting New Records, Despite Inflation and Low Consumer Confidence
According to Standard and Poor’s S&P CoreLogic Case-Shiller national home price index, home prices posted an 18.6% gain in June, up from 16.8% in May. This represents the highest rate in more than 30 years of data collection. It also represents the 13th consecutive month of increasing prices, and even more alarming, the third consecutive month where the growth rate of prices hit a new record.
Phoenix, San Diego and Seattle reported the highest year-over-year gains a month the 20-city index in April. Phoenix had the highest increase with a 22.3% year-over-year price increase, followed by San Diego with 21.6% and Seattle with a 20.2% increase. All 20 major U.S. cities reported higher price increases in the year ending April 2021 versus the year ending March 2021, reports Standard and Poors.
Charlotte, Cleveland, Dallas, Denver and Seattle joined the National Composite in recording their all-time highest 12-month gains.
The Case-Schiller index measures report-sales data and reports on a two-month delay. Since June, the housing-market buying frenzy has slowed slightly, but the recent reports show that prices continue to rise. The median existing-home sales price in July rose 17.8% from a year earlier to $359,000, the National Association of Realtors said earlier this month, according to the WSJ.
The news comes on the heels of the most recent Consumer Confidence survey which showed an increase in the number of Americans that had a dismal six-month outlook for the economy and their personal salaries. The unrelenting increase in home prices also accompanies inflation levels currently at a 30-year high.
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