The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 16.6% annual gain for May, 2021. Their 10-City Composite annual increase came in at 16.4% and their 20-City Composite posted a 17% year-over-year gain.
“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. May’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.” Said Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P DJI.