Single-Family Home Prices Up 14.6% in April Nationwide

Home price gains reached the top quartile of growth historically in April as home prices increased 14.6% year over year. That’s up from March’s 13.3% annual increase, according to the S&P CoreLogic Case-Shiller National Home Price Index. In S&P’s 10-city composite for larger cities, prices were up 14.4% from 12.9% in March. CNBC reports that the cities with the highest year-over-year price increases were Phoenix, San Diego, and Seattle, all of which posted more than 20% price advances. The managing director and global head of index investment strategy at S&P Dow Jones Indices called the monthly jumps “truly extraordinary.”

Not only did home prices rise in all 20 cities, but the price gains accelerated in all as well and were in the top quartile of performance historically.

Five cities – Charlotte, North Carolina, Cleveland, Dallas, Denver and Seattle – saw their largest annual gains ever.

“We have previously suggested that the strength in the U.S. housing market is being driven in part by 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.

Price gains have been expanding for the last 11 months, as buyer demand continues to outstrip supply. The inventory of homes for sale rose slightly in May compared with April, but was still 21% lower than May 2020, according to the National Association of Realtors.

Home sales have been falling for the past few months, due both to low supply, especially at the entry level of the market, and very high prices. Single-family housing starts have also slipped, as homebuilders try to keep up with a heavy backlog of demand amid high prices for land, labor and materials.

Read More