Home Price Index Highlights: June 2021
- National home prices increased 17.2% year over year in June.
- Appreciation for detached properties was the highest in the history of the CoreLogic HPI.
National home prices increased 17.2% year over year in June 2021, according to the latest CoreLogic Home Price Index (HPI®) Report . The June 2021 HPI gain was up from the June 2020 gain of 4.5% and was the highest year-over-year gain since 1979. The increase in home prices was fueled by low mortgage rates, low for-sale supply and a rebounding economy. Projected increases in for-sale supply and moderation in demand as prices become out of reach for some buyers could slow home price gains over the next 12 months
HPI Growth by Price and Property Type Tiers
CoreLogic analyzes four individual home-price tiers that are calculated relative to the median national home sale price.[1] Home price growth accelerated for all four price tiers to the highest rates since the inception of the CoreLogic HPI in 1976. The lowest price tier increased 21.4% year over year in June 2021, compared with 19.5% for the low- to middle-price tier, 19.4% for the middle- to moderate-price tier, and 19% for the high-price tier. While appreciation was highest for lower-priced homes, the difference in appreciation rates for the four price tiers is converging, showing that supply is restricted at all prices levels.
CoreLogic also provides the HPI separately for detached — or freestanding — properties and attached properties (such as condos or townhouses). Appreciation of detached properties (19.1%) was almost double that of attached properties (10.7%) in June as prospective buyers continue to seek out more space. The appreciation for detached properties was the highest in the history of the index.
Figure 1: Home Prices Accelerate at All Price Levels
Year-Over-Year Change in HPI by Price Tier
State-Level Results
Figure 2 shows the year-over-year HPI growth in June 2021 for the 5 highest- and lowest-appreciating states. While all states showed annual increases in HPI in June, appreciation was strongest in the West. Idaho appreciated 34.2% year over year in June followed by Arizona with 26.1%. At the low end, New York saw home prices increase 6%, and home prices in North Dakota increased 6.3%.
The surge in home price appreciation was felt across the country, with all states showing higher appreciation in June 2021 than in June 2020. Idaho had the biggest acceleration in home price growth from June 2020 to June 2021. An influx of buyers in search of relatively less expensive housing drove prices 22.6 percentage points higher over the year in Idaho.
Figure 2: Appreciation Was Strongest in the West
States With the Highest and Lowest Year-Over-Year Change in HPI for June 2021
As supply and demand pressures endured and construction costs spiked, home price gains reached the highest annual growth since 1979 in June. While affordability challenges intensify, low mortgage rates, rising savings and an improving labor market are helping to keep homeownership within reach for many prospective buyers.
However, CoreLogic projects home price gains may slow over the next 12 months as demand moderates and for-sale inventory rises. For more information on home price insights and trends, check out our latest HPI Report.
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[1] The four price tiers are based on the median sale price and are as follows: homes priced at 75% or less of the median (low price), homes priced between 75% and 100% of the median (low-to-middle price), homes priced between 100% and 125% of the median (middle-to-moderate price) and homes priced greater than 125% of the median (high price).
