U.S. home prices soared to the highest level on record in April as the COVID-19 outbreak accelerated the migration of people from the inner city to the suburbs.
According to Foxbusiness, the national Case-Shiller Home Price Indices showed that home prices rose 14.6 percent in April from a year earlier, the highest in more than three decades. the highest in more than three decades.
Home prices are now 34.9 percent higher than their peak in 2006.
Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, said, “April was a truly extraordinary performance.”
The 20-city composite index rose 14.9% year-over-year, up from 12.9% the previous month. All 20 cities saw home prices increase over last year, with Phoenix (up 22.3%), San Diego (up 21.6%) and Seattle (up 20.2%) posting the largest price gains. Chicago (up 9.9%) saw the smallest increase.
Charlotte (Charlotte), Cleveland (Cleveland), Dallas (Dallas), Denver (Denver) and Seattle (Seattle) also recorded the highest annual price increases.
Selma Hepp, deputy chief economist at CoreLogic, said potential homebuyers waiting for home prices to cool may stay off the sidelines for quite some time.
“Mortgage rates are still 50 percent lower than they were in 2005, the last peak in housing price growth, which has led to a lower ratio of mortgage payments to monthly household income today,” she said. “Continued strong demand will likely continue to put pressure on prices, which will likely maintain double-digit growth rates for the remainder of 2021.”