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US home prices increased at a new record 19.9% yoy in July 2021, following a 19.1% rise in June S&P as measured by the CoreLogic Case-Shiller 20-city home price index. Biggest rises were Phoenix (32.4%), San Diego (27.8%), and Seattle (25.5%)

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US S&P CoreLogic Case-Shiller 20-city home price index for July 2021:

  • Increased 19.9% yoy in July 2021, following a 19.1% rise in June and compared to market forecasts of a 20% rise.
  • The National Composite Index marked its fourteenth consecutive month of accelerating prices with a record 19.7% gain from year-ago levels.
  • Phoenix (32.4%), San Diego (27.8%), and Seattle (25.5%) continued to post the biggest increases.
  • New York joined Boston, Charlotte, Cleveland, Dallas, Denver, and Seattle in recording their all-time highest annual gains.

United States S&P Case-Shiller Home Price Index

Home resales account for the bulk of U.S. home sales, surged 44.6% on a year-on-year basis. However the annual increase is distorted by the plunge in sales in May 2020, when the economy was reeling from mandatory shutdowns of non-essential businesses to slow the first wave of COVID-19 cases.

Year-over-year returns of different housing price ranges (tiers) for Phoenix and San Diego.

Phoenix (32.4%), San Diego (27.8%), and Seattle (25.5%) continued to post the biggest increases.

US SP Corelogic July 2002 AZ CA

Single-family home sales, the largest segment of the housing market, dropped 1.0% to a pace of 5.08 million units, the lowest since last June. Sales of multi-family homes were unchanged, though they continue to rebound as more people return to cities. The decline in sales reported by the National Association of Realtors on Tuesday was concentrated in the single-family housing segment, which benefited from a migration from cities as millions of Americans sought more spacious accommodations for home offices and schooling during the COVID-19 pandemic.

Housing Supply Constraints

Housing supply was already tight before the pandemic. With the public health situation brightening, there is cautious optimism that inventory will improve. Some homeowners were reluctant to list their homes because of fear of contracting the virus from potential buyers touring their properties. Some elderly Americans likely delayed downsizing due to the pandemic. There are widespread bidding wars, with institutional buyers reported to be outbidding other buyers.

Source: S&P CoreLogic Case-Shiller

From The TradersCommunity News Desk

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