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Home Price Growth Surges to Record High: Case-Shiller Index U.S. single-family home prices in 20 key urban markets rose 19.1 percent in June from a year earlier, marking the largest annual price increase in the 20-year history of the 20-city composite measure.

By The Epoch Times

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Two new reports released Tuesday show home prices continuing their skyward vault, with supply shortages and strong demand putting upwards pressure on prices.

U.S. single-family home prices in 20 key urban markets rose 19.1 percent in June from a year earlier, marking the largest annual price increase in the 20-year history of the 20-city composite measure, according to the S&P CoreLogic Case-Shiller home price index (pdf), released on Aug. 31.

"June 2021 is the third consecutive month in which the growth rate of housing prices set a record," Craig Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P DJI, said in a statement. "The last several months have been extraordinary not only in the level of price gains, but in the consistency of gains across the country."

The 20-city index shows home prices are now 29.9 percent higher than the 2006 peak.

At the same time, the Case-Schiller national composite index, which covers all nine U.S. census divisions, saw an 18.6 percent annual gain, also a record for the series, which dates back to 1987.

"June's 18.6 percent price gain for the National Composite is the highest reading in more than 30 years of S&P CoreLogic Case-Shiller data. This month, Boston joined Charlotte, Cleveland, Dallas, Denver, and Seattle in recording their all-time highest 12-month gains," Lazzara said.

The national index shows home prices nationwide are now 41.3 percent higher than their last peak during the 2006 housing boom.

"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. June's data are consistent with this hypothesis," Lazzara said.

Meanwhile, an Aug. 31 report from the Federal Housing Finance Agency (FHFA), showed house prices rose 17.4 percent from the second quarter of 2020 to the second quarter of this year. At the same time, house prices vaulted 4.9 percent in the second quarter of 2021 compared to the earlier quarter, with over-the-year price growth in June coming in at 18.8 percent and 1.6 percent over the month.

"During the second quarter, house prices peaked in June with an 18.8 percent growth rate compared to a year ago," Lynn Fisher, Deputy Director of FHFA's Division of Research and Statistics, said in a statement. "For the quarter, annual gains surpassed 20 percent in the Mountain, New England, and Pacific census divisions and in all of the top 20 metro areas."

House prices have risen for 40 consecutive quarters, according to FHFA figures.

Sales of new single-family homes increased in July after three straight monthly declines, according to a Commerce Department report released last week (pdf), pushing the median price of a new home in July to a record high of $390,500.

At the same time, the median price of an existing home retreated slightly to $359,900 in July from $363,300 in June, according to a recent report from the National Association of Realtors (NAR). While the dip may be an encouraging sign for buyers facing sticker shock, the July price was up 17.8 percent from a year ago and marked the 113th straight month of year-over-year increases.

"Although we shouldn't expect to see home prices drop in the coming months, there is a chance that they will level off as inventory continues to gradually improve," Lawrence Yun, NAR's chief economist, said in a statement.

By Tom Ozimek

Tom Ozimek has a broad background in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he's ever heard is from Roy Peter Clark: 'Hit your target' and 'leave the best for last.'

The Epoch Times, founded in 2000, is headquartered in Manhattan, New York, with a mission to provide independent and accurate information free of political bias or corporate influence. The organization was established in response to censorship within China and a lack of global awareness regarding the Chinese regime's repression of the spiritual practice Falun Gong.

The Epoch Times is a widely read newspaper that is distributed in 33 countries and is available in 21 languages. The publication has been critical in providing balanced and detailed reporting on major global events such as the 2003 SARS pandemic and the 2008 financial crisis. Notably, the organization has played a key role in exposing corruption inside China.

Aside from its human rights coverage, The Epoch Times has made significant contributions in a variety of fields. It has received praise for its in-depth analysis and expert perspectives on business, the economy and U.S. politics. The newspaper has also received praise for its broad coverage of these topics.

A series of editorials titled "Nine Commentaries on the Communist Party" appeared in The Epoch Times in 2004. It asserts that freedom and prosperity in China can only be achieved by eliminating the Communist Party, which violated China's cultural and spiritual values. In addition, the organization led the Tuidang movement, which resulted in over 400 million Chinese citizens quitting the Communist Party. In spite of this, 90% of websites referring to the "Nine Commentaries" were blocked by the Chinese regime.

The Epoch Times has been at the forefront of investigating high-level corruption cases within the Chinese regime, with its reporters taking significant risks to uncover these stories. The organization has received several awards for its investigative journalism.

The organization has received several awards for its investigative journalism. For more, visit www.theepochtimes.com.

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