Home prices across the US skyrocketed to yet another record in June, as buyers continued to compete for a shrinking inventory of properties.
The S&P CoreLogic Case-Shiller national home price index broke yet another record in June, soaring by 18.6% from one year ago, marking the third consecutive month of record-breaking gains and sharpest jump in home price inflation on data going back to 1988.
America’s real estate market has been booming since the beginning of the pandemic, as work-from-home flexibility prompted a surge in demand for more spacious housing outside of major urban regions. That, and historically low mortgage rates, coupled with short housing supply and subsequent soaring lumber and material costs, have forced housing prices to repeatedly reach record-high levels throughout the past year.
Policymakers have taken notice of the trend, and some have pointed to Federal Reserve Chair Jerome Powell’s mortgage-backed security purchases as the reason behind the rally pushing the cost of housing to skyrocketing levels. Moreover, to make the situation even more financially burdensome for Americans, the proportion of properties at lower price points have significantly decreased, as they were quickly bought up by investors and converted into rental homes.
Information for this briefing was found via S&P Global. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.