A monthly report from a real estate analytics company shows that housing prices across the country are surging, with the firm reporting a record 16.6% gain.
This may not be surprising to people that follow the Sarasota-Bradenton area’s real estate market, as the median price for a single-family property has shot above $400,000 in recent months.
CoreLogic’s Case-Shiller Indices, a leading measure of U.S. home prices, takes three data sets the company follows and boils them down to attempt to measure changes in the total value of all existing single-family housing stock.
CoreLogic releases a report every month, with May’s data being released Tuesday.
“A month ago, I described April’s performance as “truly extraordinary,” and this month I find myself running out of superlatives,” said Craig J. Lazzara, managing director and global head of index investment strategy at S&P DJI. “The 16.6% gain is the highest reading in more than 30 years of S&P CoreLogic Case-Shiller data.”
Residential real estate news:Market has fewest number of homes ever for sale in Sarasota and Manatee counties
More:Apartment rental rates, home prices at historic highs in Sarasota, Bradenton
Did you know? Lakewood Ranch became the fastest-selling community in the nation
The 16.6% gain is a year-over-year figure comparing May 2020 to May 2021. On the monthly gain national home prices increased 2.1% before seasonal adjustments to the data. With seasonal adjustments, the increase in home prices was 1.7% from April to May.
All 20 metro area tracked in one of the indices saw increases with 17 of the metros at all-time highs for home price. The metros include Miami and Tampa in Florida.
By the way:Video: Why millennials aren’t buying homes
Hidden costs of buying a home: VWhat you should know before putting down an offer
CoreLogic suggests that home prices are being influenced by reaction to the COVID pandemic, as buyers move from urban apartments to suburban homes.
“May’s data continue to be consistent with this hypothesis,” Lazzara said in a news release. “This demand surge may simply represent an acceleration of purchases that would have occurred anyway over the next several years.”
Another hypothesis that CoreLogic entertained as a cause of the demand spike that has caused their home price index to spike to all-time highs is a possible “secular change in locational preferences, leading to a permanent shift in the demand curve for housing.”
“More time and data will be required to analyze this question,” the report notes.