Home prices climbed at an annual rate of 18.6% in June, the third consecutive month of record price appreciation, according to the S&P Corelogic Case-Shiller Index released Tuesday.
June’s increase follows a revised 16.8% gain in May. The monthly increase is 1.8%, in line with estimates.
Phoenix, San Diego and Seattle posted the biggest gains, at 29.3%, 27.1% and 25%, respectively.
“June 2021 is the third consecutive month in which the rate of house price growth has set a record,” said Craig J. Lazzara, managing director and global head of index investment strategy at S&P DJI. “The past few months have been extraordinary, not only in terms of the level of price increases, but also in terms of consistency of earnings across the country.”
Lazzara added that the data suggests that buyers are moving from urban to suburban areas during the coronavirus, but more research is needed to say whether this is an acceleration of a trend or a permanent change of preference.
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“The rise in prices during the summer months reflects a combination of peak demand and larger homes for sale, as families with school-aged children vied for a place in the new school year,” said George Ratiu, director of economic research for Realtor.com, said in a statement. . “In a notable change, July also saw real estate markets welcome a larger influx of new listings, as homeowners across the country moved to move to sale plans delayed by the pandemic. “
Housing has been one of the strongest sectors in the last 17 months of the pandemic, and that bodes well for an economy that depends on consumer purchases. While there has been recent evidence that parts of the economy have slowed down from the pace set earlier this year, housing does not yet appear to be the case.