Home prices nationally rose 4.8% annually in July, up from the 4.3% annual increase in June, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
Phoenix, Seattle, and Charlotte reported the highest year-over-year gains, with Phoenix showing a 9.2% increase, marking the 14th consecutive month in which Phoenix home prices rose more than those of any other city.
For all home prices, there was a seasonally adjusted increase of 0.4% in July.
“The strength of the housing market was consistent nationally — all 19 cities for which we have July data rose, with 16 of them outpacing their June gains,” said Craig Lazzara, global head of index investment strategy at S&P Dow Jones Indices, when announcing the findings.
Lazzara noted that even poor-performing cities saw gains in July.
“There was some growth even in the worst performing cities,” he said, referring to Chicago, with 0.8%, and New York, with 1.3%.
Rock-bottom interest rates on mortgages have helped give prices a boost. The rate for a 30-year fixed mortgage dropped to an all-time low of 3.09% this month, and rates are expected to remain low into 2021.
However, a recovering economy could increase mortgage rates.
“As the economic recovery gains momentum, mortgage rates might back up to around 3.5%,” Lynn Reaser, chief economist at Point Loma Nazarene University in San Diego, told Bankrate.com.
The lack of inventory is also lifting prices. National inventory shrank 32.6% in July on the year, according to Realtor.com. Its July report states that pent-up demand from home buyers “is driving inventory to all-time lows and is also steadily pushing prices up higher.”
