It’s been decades since home prices last rose as quickly as they have over the last year, a trend that’s easy to spot on a chart of CoreLogic’s Home Price Index.
Average home prices in June were up 17.2% compared with the year before, the largest year-over-year increase measured by CoreLogic’s index since 1979, according to a report released by the company this week.
Home prices over the years have been on a wild ride, as shown in the chart below.
Demand for homes has skyrocketed since soon after the pandemic hit, as telecommuters sought space to work from home. On top of that, the supply of houses for sale has been severely constrained, leading to prices so high that sales have actually started to slack off as buyers have been driven from the market.
“Home prices have been rising in the mid-single digits for some years now. The recent surge to double-digit price jumps reflects the convergence of exceptional demand and persistent low supply,” said Frank Martell, president and CEO of CoreLogic in the report.
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