US home prices soar to 45-year high
U.S. home prices soared 18.1 percent in August, notching the highest annualized rate of acceleration since CoreLogic began recording the data in 1977.
U.S. home prices increased by 1.3 percent between July and August, according to the CoreLogic Home Price Index released Tuesday. While month-over-month growth has been higher in recent months, the annual rate of acceleration marked the largest jump since CoreLogic began tracking the data in January 1977. It’s also the seventh consecutive month of double-digit growth.
Low mortgage rates, lack of inventory and steep competition among buyers is contributing to high growth, but it’s also had a paralyzing effect on the market. CoreLogic predicts growth to slow to 2.2 percent by August 2022. However, some states are experiencing astronomical year-over-year increases, with Oregon’s Bend and Idaho’s Twin Falls climbing 37.2 and 35.8 percent, respectively.
Statewide, Idaho and Arizona straddled the top spots at 32.2 and 29.5 percent, respectively.
Meanwhile, detached properties continued to experience a larger growth spike than attached properties, tallying 19.8 growth compared to just 12 percent for multifamily units.
“Single-family detached homes continue to be in high demand,” CoreLogic Chief Economist Dr. Frank Nothaft said in a statement.“These properties offer more living space and distance from neighboring homes than that of attached properties. On average, detached homes have 28 percent more inside space compared to single-family attached properties and about twice as much space as apartments in multifamily structures.”