June Annual Price Increases Reach 42-Year High

CoreLogic’s most recent Home Price Index and Forecast for June shows the housing market remains strong, experiencing a price increase of 17.2% compared to June 2020. Supply and demand, along with building material costs, have pushed home prices up to the highest annual rate since 1979. Calculated Risk says though affordability challenges worsen with rising prices, low mortgage rates and an improving labor market help many prospective buyers. CoreLogic predicts home price gains to slow as inventory increases and demand softens.

“Home prices have been rising in the mid-single digits for some years now. The recent surge to double-digit price jumps reflect the convergence of exceptional demand and persistent low supply,” said Frank Martell, president and CEO of CoreLogic. “With plenty of cash on the sidelines, along with very low mortgage rates, prices are heading up and affordability will become a more acute issue for the foreseeable future.”
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Nationally, home prices increased 17.2% in June 2021, compared to June 2020. On a month-over-month basis, home prices increased by 2.3% compared to May 2021.
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“The pandemic sparked an increase in buyer desire for lower density neighborhoods and more living space — both inside and outside their home,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Communities with single-family detached houses fill this need. Detached homes had the highest annual growth in June since the inception of the CoreLogic Home Price Index in 1976.”

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