The latest results from the S&P CoreLogic Case-Shiller Indices for April 2021 showed that home prices continued to rise dramatically throughout the United States. The National Home Price NSA Index reported a 14.6% annual gain in April, up from 13.3% in the previous month. Cities with the highest year-over-year gains are Phoenix, San Diego, and Seattle.
Craig J. Lazzara, managing director at S&P DJI, said, “April's performance was truly extraordinary. 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.”
The 10-city composite annual increase came in at 14.4%, up from 12.9% in the previous month. The 20-city composite posted a 14.9% year-over-year gain, up from 13.4% in the previous month.
The U.S. National Index posted a 2.1% month-over-month increase, while the 10-city and 20-city composites posted increases of 1.9% and 2.9% respectively. After seasonal adjustment, the index posted a 1.6% month-over-month increase, while 10-city and 20-city composite posted a 1.4% and 1.6% increase respectively. In April, all 20 cities posted an increase before and after seasonal adjustments.
Phoenix led the way with a 22.3% year-over-year price increase, followed by San Diego with a 21.6% increase and Seattle with a 20.2% increase. All 20 cities reported higher price increases in April 2021 than in March 2021.
“This demand surge may simply represent an acceleration of purchases that would have occurred anyway over the next several years,” Lazzara continued. “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.”
“Price gains in all 20 cities accelerated; price gains in all 20 cities were in the top quartile of historical performance. In 15 cities, price gains were in the top decile. Five cities – Charlotte, Cleveland, Dallas, Denver, and Seattle – joined the National Composite in recording their all-time highest 12-month gains,” Lazzara added.
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