The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 14.6% annual gain for April, 2021. Their 10-City Composite annual increase came in at 14.4% and their 20-City Composite posted a 14.9% year-over-year gain. April’s figure marked the highest annual rate of price growth since the 1987, the year the index began.
“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. 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.”
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