In June, national home prices continued to rise at a fast and unsustainable rate. Strong demand and low housing inventory have been driving home prices at double-digit growths for eleven months. All 20 metro areas reported home price increases in June, while 12 of them had an acceleration in home price growth.
The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 24.3% in June, following a 24.1% increase in May. It marks the eleventh consecutive month of double-digit growth in home prices since August 2020. National home prices are now 40.5% higher than their last peak during the housing boom in 2006. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted an 18.6% annual gain in June, up from 16.8% in May. It is the fastest annual gain in the history of this index dating back to 1987.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 21.5% in June, following a 24.2% increase in May. On a year-over-year basis, the FHFA Home Price NSA Index rose by 18.8% in June, after an increase of 18.1% in May. The FHFA thus confirmed rapid growth in home prices for this month.
In addition to tracking national home price changes, S&P CoreLogic reported home price indexes across 20 metro areas in June. All 20 metro areas continued to show strong price gains and their annual growth rates ranged from 12.6% to 51.1%. Among all 20 metro areas, half metros exceeded the national average of 24.3%. Phoenix led the way with a 51.1% increase, followed by Tampa with a 46.0% increase and Las Vegas with a 45.3% increase. Twelve out of the 20 metro areas had an acceleration in home price growth, including Phoenix, San Francisco, Denver, Miami, Tampa, Atlanta, Chicago, Minneapolis, Charlotte, Las Vegas, Cleveland and Dallas.
Leave a Reply