According to the latest CoreLogic Home Price Index (HPI®) Report, national home prices increased 18% year-over-year in July 2021. The July 2021 HPI gain was up from July 2020’s gain of 5.3% and was the highest 12-month growth in the U.S. index since the series started in 1976. According to the report the increase in home prices was fueled by low mortgage rates, low for-sale supply, and a rebounding economy. Projected increases for-sale supply and moderation in demand as prices grow out of reach for some buyers could slow home price gains over the next 12 months.
CoreLogic analyzes four individual home-price tiers that are calculated relative to the median national home sale price. Home price growth accelerated for all four price tiers to the highest rates since the inception of the CoreLogic HPI in 1976. The lowest price tier increased 22.1% year over year in July 2021, compared with 20% for the low- to middle-price tier, 19.9% for the middle- to moderate-price tier, and 19.1% for the high-price tier. While appreciation was highest for lower-priced homes, the difference in appreciation rates for the four price tiers is converging, suggesting that supply is restricted at all prices levels.
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U.S. Home Price Index Annual Growth Reaches All-Time High