While price growth is beginning to slow down as we enter the end of summer, June home values reached record levels, even hitting a 40-year high, according to the latest CoreLogic Home Price Index report.
– U.S. home prices increased 17.2% YoY in June 2021.
– Month-over-month, home prices increased by 2.3% compared to May 2021.
– Detached property appreciation grew in June to 19.1%—the highest measured since the inception of the index.
– Home price gains are projected to slow to a 3.2% increase by June 2022, with ongoing affordability challenges knocking down potential buyers.
– In June, home prices rose in the West with Twin Falls, Idaho, experiencing the highest YoY increase at 40.2%. Bend, Oregon, ranked second with a YoY increase of 35.4%.
– Idaho and Arizona continue to have the strongest price growth at 34.2% and 26.1%, respectively. Montana also had a 24.3% YoY.
High home prices continue to lock some buyers out of the market, but, for others, if the amenities are there, the price is justified. Trends we saw during the pandemic’s peak still stand, with homebuyers seeking out more living space and properties in lower density communities. Outdoor features are also ranking high on priority lists.
“The pandemic sparked an increase in buyer desire for lower density neighborhoods and more living space—both inside and outside their home,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Communities with single-family detached houses fill this need. Detached homes had the highest annual growth in June since the inception of the CoreLogic Home Price Index in 1976.”