Case-Shiller Home Price Index at Record High
The S&P CoreLogic Case-Shiller 20-city home price index in the US increased 17 percent yoy in May of 2021, pushing the index to a record high. It compares with upwardly revised 15 percent growth in the previous month and market expectations of 16.4 percent. Among the 20 cities included in the index, prices increased the most in Phoenix (25.9 percent), followed by San Diego (24.7 percent) and Seattle (23.4 percent). "The strength in the US housing market is being driven in part by the reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. May’s data continue to be consistent with this hypothesis. This demand surge may simply represent an acceleration of purchases that would have occurred anyway over the next several years. Alternatively, there may have been a secular change in locational preferences, leading to a permanent shift in the demand curve for housing", said Craig J. Lazzara, Managing Director at S&P DJI.
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