The growth of home prices nationally continued to accelerate in July according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. The National Index, which covers all nine U.S. census divisions, rose 4.8 percent in July on an annual basis compared to a 4.3 percent year-over-year  gain in June. There was 0.8 percent appreciation month-over-month before seasonal adjustment and 0.4 percent afterward.
The 10-City Composite grew at an annual rate of 3.3 percent, up from 2.8 percent the previous month while to 20-City Composite posted a 3.9 percent increase compared to 3.5 percent in June. Each composite gained 0.6 percent before seasonal adjustment. The 10-City change was 0.5 percent and the 20-City was 0.6 percent post adjustment.
The report notes that data for March through June out of Wayne County, Michigan (Detroit), previously unavailable due to coronavirus related office closures is now online. However, there were not enough records for the month of July to generate a current valid index for the Detroit metro area.
In July, 18 of 19 cities (excluding Detroit) reported increases before seasonal adjustment. Eighteen reported increases after adjustment as well.
Phoenix, Seattle, and Charlotte had the highest year-over-year gains among the 19 cities. Appreciation in Phoenix was an annual 9.2 percent, followed by Seattle at 7.0 percent and Charlotte with 6.0 percent. Sixteen of the 19 cities reported higher price increases in the year ending July 2020 versus the year ending June 2020.
CoreLogic Deputy Chief Economist Selma Hepp recapped the reasons behind the price gains. “The U.S. housing market has been caught up in a ‘perfect storm’ during the COVID-19 pandemic. Market resiliency persisted throughout the summer as traditional first-time buyers sought refuge in larger square footage and outdoor space, and buyers who had not been financially impacted by the pandemic sought second homes in resort, beach and mountain areas. Demand will likely keep home price growth strong over the coming months. And, continued price growth will help insulate homeowners’ equity position, which will be particularly helpful to owners who have been financially impacted by the pandemic and opted for a forbearance program. Those homeowners may be able to sell a home without going through a short sale or a foreclosure.”