Future home prices
As home sales stagnated in the spring, a nationwide seller’s market saw prices continue to skyrocket.
Housing prices broke records for the third consecutive month in May, surging 16.6 percent over May 2020 — the highest year-over-year jump in more than 30 years of data collected by the S&P CoreLogic Case-Shiller index.
“A month ago, I described April’s performance as ‘truly extraordinary,’ and this month I find myself running out of superlatives,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices.
In April, prices had jumped 14.8 percent year-over-year, besting March’s then-record 13.2 percent annual increase. The national composite index is now 38 percent higher than its previous peak in July 2006.
Analysts attribute the continued strength to the continued, pandemic-spurred migration from urban apartments to suburban homes. In April, an analysis by Freddie Mac estimated the housing market would need 3.8 million more single-family homes to meet current demand.
The West and Southwest saw the sharpest increases in the Case-Shiller report.
Phoenix, San Diego and Seattle brought the greatest year-over-year gains, each jumping over 23 percent.
The same five cities that reported their all-time highest annual gains in April — Charlotte, North Carolina; Cleveland; Dallas; Denver; and Seattle — set new records in May
But the growth extended nationwide. Prices for all cities in Case-Shiller’s 20-city composite index rose, both before and after seasonal adjustments.
“The market’s strength continues to be broadly-based,” said Lazzara. “Prices in 18 of our 20 cities now stand at all-time highs.
Boston Condos for Sale and the Bottom Line
The future of the nation’s real estate market appears to be improving every day.
By year 2015, U.S. homes will be worth about twice the value they are today, predicted Dr. Dennis Torres, director of real estate operations and a professor at Pepperdine University. He also believes home values will be three times today’s values in 2018.
Persons looking to buy a home should do so now, since durable goods, real estate, cars, machinery and other essentials will increase in value considerably more than the cost of living over the next several years, Torres said. Salaries will fail to rise, which will make it difficult for a person to buy a home in 2015, he added.