The increase in single-family home price tags showed no signs of slowing in July as the most recent S&P CoreLogic/Case-Shiller Indices showed another record surge.
For the fourth consecutive month, home prices surged with a 19.7% climb in July—up from 18.7% in June. Experts note that July’s numbers marked another three-decade record in price growth for that month.
All 20 cities saw monthly price increases as the 10-City Composite increased 19.1%, while the 20-City Composite by almost 20%, with 19 of the markets reaching all-time high price gains—Chicago was the only outlier.
While all 20 cities showed price growth, experts note that 17 markets gained more in the 12 months ending in July than they had in the 12 months that ended in June.
Maintaining their top spots on the price gain list, Phoenix, San Diego and Seattle recorded 32.4%, 27.8% and 25.5% gains, respectively.
The complete data for the 20 markets measured by S&P:
Las Vegas, Nev.
Los Angeles, Calif.
New York, N.Y.
San Diego, Calif.
San Francisco, Calif.
What the Industry Is Saying:
“July 2021 is the fourth consecutive month in which the growth rate of housing prices set a record…This month, New York joined Boston, 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 quintile of historical performance; in 15 cities, price gains were in the top 5% of historical performance.
“We have previously suggested that the strength in the U.S. housing market is being driven in part by a reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. July’s data are consistent with this hypothesis. This demand surge may simply represent an acceleration of purchases that would have occurred anyway over the next several years. Alternatively, there may have been a secular change in locational preferences, leading to a permanent shift in the demand curve for housing. More time and data will be required to analyze this question.” — Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices
“Today’s S&P Case-Shiller Index reflects the competitive nature of the 2021 summer housing market, with interested buyers, including everyone from families looking for homes in anticipation of an in-person, back-to-school season to buyers seeking larger homes in desirable suburban markets.
“However, July also saw a rising wave of homes coming to market as many homeowners decided to press forward with pandemic-delayed plans, which spurred sales activity. The flow of fresh inventory on realtor.com®, which continued into August, offered buyers more options and helped take some of the sting out of skyrocketing prices and the frenzied pace from earlier in 2021.
“While prices continue to rise, the rate of growth has been moderating. This is expected to temper as we move further through the fall season and white-hot market competition mellows into more typical seasonal patterns. For many buyers, autumn is already providing better buying opportunities, with fewer competing bids, the return of contingencies and more listings with price reductions.” — George Ratiu, Senior Economist, realtor.com®
Jordan Grice is RISMedia’s associate content editor. Email him your real estate news to email@example.com.