Not another article about skyrocketing home prices? This is likely what many readers of this article may be thinking right now. As a matter of fact, that is precisely what this article is about. This time, the latest Corelogic Home Price Index Report has indicated that the month of June 2021 brought a 40-year high in home prices. With this said, many economists are predicting that home price growth will begin to slow down as we enter the end of summer.
What the data shows
- Year-over-year for June 2021: U.S. home prices increased 17.2%
- Month-over-month for June 2021: U.S. home prices increased 2.3% compared to May 2021
- Appreciation for detached properties grew to 19.1% (the highest measured since the inception of the Corelogic Home Price Index Report)
- Home price gains are projected to slow to a 3.2% increase by June 2022
As we have written about many times before, home prices can not sustain the record appreciation levels that they have enjoyed recently. As it is now, wage growth has not been able to keep up with home price growth. Unfortunately, the home price levels already reached are pricing many people out of the market. To further exacerbate the situation, rental prices have also increased significantly, which makes it even more difficult to save for a home purchase.
A trend that we are continuing to see in the real estate market is the desire for additional indoor and outdoor living space. For this reason, the detached single-family home market has led the market in price appreciation. With the recent spike in COVID-19 cases in several states including Florida, we expect this desire for more living and outdoor space to continue. It is yet to be determined what impact, if any, the delta variant of COVID-19 will have on the real estate market or the overall economy.
Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. At Live South Florida Realty, Inc., we have been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!