The cost to be a homeowner in the United States rose to a record amount in June as homebuyers competed for a limited supply of available houses. This is the latest piece of evidence the housing market is still red-hot.
The S&P CoreLogic Case-Shiller 20-city home price index rose to 19.1% in June compared to last June. This is the largest increase on records dating back to 2000, ABC News reported.
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In June, the annual price gains were higher in all 20 cities than they were in May, with prices at record highs in 19 of the 20 cities. Chicago is the exception.
"The last several months have been extraordinary not only in the level of price gains but in the consistency of gains across the country," Craig Lazzara, managing director of index investment strategy at S&P DJI, said.
While the market is hot, certain signs point toward high prices resulting in sales slowing, like a report showing sales for existing homes rose 1.5% in July from a year prior.
Prices rose in June by the most in Phoenix, where numbers soared to 29.3% compared to a year earlier, followed by San Diego, with a 27.1% increase, and Seattle at 25%.
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Many Americans have moved out of their big cities apartments, opting for homes in the suburbs with the pandemic looming. However, this was not easy as many homeowners have been reluctant to sell, leaving strains on the construction industry looking to build new homes amid labor, land, and material shortages.
All in all, 1.32 million existing homes were available for sale in July, down 12% from a year prior. But now, high prices are encouraging more people to sell, as the number of available homes rose in July compared to June.
