Home prices posted their largest annual gain since the S&P CoreLogic Case-Shiller index started tracking home prices in 1987.
Prices rose 18.6% annually in June, up from the 16.8% increase in May. Nationally home prices are 41% higher than their last peak during the housing boom in 2006. The 10-City composite index rose 18.5%, up from the previous month’s 16.6% while the 20-City composite increased 19.1%, up from 17.1%.
Phoenix, San Diego, and Seattle reported the strongest price increases of the 20 cities. Prices in Phoenix increased 29.3% year-over-year. In San Diego they rose 27.1%, and in Seattle they were up 25.0%. All 20 cities reported higher price increases in the year ending June 2021 versus the year ending May 2021.
“The last several months have been extraordinary not only in the level of price gains, but in the consistency of gains across the country,” said Craig Lazzara, managing director and global head of index investment strategy at S&P DJI. “In June, all 20 cities rose, and all 20 gained more in the 12 months ended in June than they had gained in the 12 months ended in May.”
Prices in just about every city in the 20-city index, except for Chicago, are at all-time highs, he said, as are the national composition and the 10- and 20-city indices.