The latest results from the S&P CoreLogic Case-Shiller Indices show that home prices continue to increase across the U.S.
In June, the U.S. National Home Price NSA Index reported an 18.6% annual gain, up from 16.8% in the previous month. The 10-City Composite annual increase came in at 18.5%, up from 16.6% in the previous month, while the 20-City Composite posted a 19.1% year-over-year gain, up from 17.1% in the previous month.
“June’s home price growth captures the basic problem in the housing market today: There aren’t enough homes for sale for the number of buyers. For the past 16 months, buyers have been virtually unphased by the level of home price growth,” says Ali Wolf, chief economist at Zonda. “Only recently have buyers started to balk at homes on the market because prices in many instances have outpaced the benefit of low interest rates. Homes are still selling very quickly—the difference today is that buyers have become more selective.”
Before seasonal adjustment, the U.S. National Index posted a 2.2% month-over-month increase in June, while the 10-City and 20-City Composites both posted increases of 1.8% and 2%, respectively. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.8%, and the 10-City and 20-City Composites both posted increases of 1.6% and 1.8%, respectively.
Out of the 20 cities included in the report, Phoenix, San Diego, and Seattle reported the highest year-over-year gains in June. Phoenix led the way with a 29.3% year-over-year price increase, followed by San Diego with a 27.1% increase and Seattle with a 25% increase. All 20 cities reported higher price increases in the year ending in June versus the year ending in May.
“June’s 18.6% price gain for the National Composite is the highest reading in more than 30 years of S&P CoreLogic Case-Shiller data,” says Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “This month, Boston joined Charlotte, Cleveland, Dallas, Denver, and Seattle in recording their all-time highest 12-month gains. Price gains in all 20 cities were in the top quartile of historical performance; in 19 cities, price gains were in the top decile.”
