Home prices in April saw a yearly gain of 14.6% in April, which is up from a 13.3% increase in March, according to the S&P CoreLogic Case-Shiller National Home Price Index latest report released on Tuesday.
Among larger cities covered by the National Home Price Index, the 10-city composite was up 14.4% year over year, from 12.9% the last month. The 20-city composite was 14.9% higher, which is up from 13.4% in March.
Home prices in Phoenix, Seattle and San Diego witnessed the highest year-over-year gains, which were up higher than 20% from the year before.
Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices said Craig Lazzara, “April’s performance was truly extraordinary. The 14.6% gain in the National Composite is literally the highest reading in more than 30 years of S&P CoreLogic Case-Shiller data.”
Not only did home prices increase in all 20 cities, but the price gains rose in all and also were in the top quartile of performance historically.
“We have previously suggested that the strength in the U.S. housing market is being driven in part by the reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. April’s data continue to be consistent with this hypothesis,” added Lazzara.
As buyer demand is continuing to outstrip supply, price gains have been seeing an uptick for the previous 11 months.
Home sales have been declining for the previous few months, due to low supply particularly at the entry level of the market, and due to very high prices.
There has been a growing discussion of a price bubble in the housing market, but the basics of today’s market say otherwise.