April’s gains mark the 11th consecutive month of price increases. Home prices rose by 12 percent in February and 13.2 percent in March. Compared to last month, prices rose by 2.1 percent, according to the new report.
Phoenix, San Diego and Seattle saw the biggest gains at 22.3, 21.6 and 20.2 percent, respectively. Although low interest rates and a dearth of inventory are in evidence nationwide, the problem is particularly pronounced in those cities.
“April’s performance was truly extraordinary,” Craig Lazzara, managing director and global head of index investment strategy at S&P DJI, said in a statement. “The 14.6 percent gain in the National Composite is literally the highest reading in more than 30 years of S&P CoreLogic Case-Shiller data.”
“Housing prices in all 20 cities rose,” Lazzara continued. “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 top decile. Five cities – Charlotte, Cleveland, Dallas, Denver, and Seattle – joined the National Composite in recording their all-time highest 12-month gains.”
The S&P/Case-Shiller U.S. National Home Price Index is “a composite of single-family home price indices that is calculated every month; the indices for the nine U.S. Census divisions are calculated using estimates of the aggregate value of single-family housing stock for the time period in question.”
“The forces that have propelled home price growth to new highs over the past year remain in place and are offering little evidence of abating,” Zillow economist Matthew Speakman said in a statement.
“Mortgage rates remain near historic lows, a demographic wave of households aging into prime homeownership years continues to swell, and despite showing some signs of bottoming, the number of available homes for sale remains historically small, particularly given the elevated demand for housing,” Speakman added. “Prices have skyrocketed as a result, and price growth continues to set new record highs.”