High housing demand and limited supply continue to put downward pressure on prices.
US home prices hit another monthly and annual record in April, according to the latest S&P CoreLogic Case-Shiller Indices.
The national S&P CoreLogic Case-Shiller index spiked nearly 15% year over year in April. That was up from 13.3% in March and the highest reading in more than 30 years.
“Pressures on home prices that have built over the last year culminated in the strongest home price growth since the beginning of the data series in 1987. Nationally, the S&P CoreLogic Case-Shiller Home Price Index soared a remarkable 14.6% year over year in April,” said CoreLogic deputy chief economist Selma Hepp.
The Case-Shiller 20-city composite index, which measures price growth across a sample of large US metro areas, posted a 14.9% annual gain, up from 13.4% in the previous month.
The report also showed that all 20 cities that make up the index experienced year-over-year price gains in April. Phoenix (+22.3%), San Diego (+21.6%), and Seattle (+20.2%) posted the highest annual gains.
“And while the acceleration may be met with concerns, mortgage interest rates remain 50% lower than they were in 2005, when home price growth last peaked, keeping the ratio of mortgage payments to monthly household income lower today,” Hepp said. “It’s probable that continued massive demand will keep pressure on prices, which are likely to remain at a double-digit growth rate throughout the remainder of 2021.”