Home-price growth climbed to a new record in June, as robust demand continued to outpace the number of homes on the market.
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 18.6% in the year that ended in June, up from a 16.8% annual rate the prior month. June marked the highest annual rate of price growth since the index began in 1987.
Home prices have skyrocketed this year, as the inventory of homes for sale remains well below typical levels and ultralow interest rates have spurred demand. Homes listed for sale this spring and summer routinely received multiple offers and sold above asking price.
The Case-Shiller index, which measures repeat-sales data, reports on a two-month delay. Since June, the housing-market frenzy has slowed slightly, though prices continue to rise at a rapid pace. The median existing-home sales price in July rose 17.8% from a year earlier to $359,900, the National Association of Realtors said earlier this month.
“The last several months have been extraordinary not only in the level of price gains, but in the consistency of gains across the country,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices.