Home prices increased 19.7% year-over-year in July, the fourth consecutive record-setting month for home prices, according to the latest S&P CoreLogic Case-Shiller Indices.
The increase was up from 18.7% in June. The 10-City Composite annual increase was 19.1% and the 20-City Composite annual increase was 19.9%.
The ongoing home price surge is driven in part by the COVID-19 pandemic, which has ushered potential buyers away from urban apartments and toward suburban homes, according to S&P spokesperson Craig Lazzara.
“This demand surge may simply represent an acceleration of purchases that would have occurred anyway over the next several years,” Lazzara said in a statement. “Alternatively, there may have been a secular change in locational preferences, leading to a permanent shift in the demand curve for housing.”
Phoenix, San Diego and Seattle reported the highest year-over-year home price gains in July, increasing 32.4%, 27.8% and 25.5%, respectively.
