(Bloomberg) — U.S. home prices increased 18% in July compared to a year earlier, according to a CoreLogic Inc. report released Tuesday.
The jump is the largest 12-month gain in the index since the series began 45 years ago. On a month-over-month basis, home prices increased by 1.8% in July from June.
“Home price appreciation continues to escalate as millennials entering their prime home buying years, renters looking to escape skyrocketing rents and deep pocketed investors drive demand,” said Frank Martell, president and CEO of CoreLogic, a global property-information firm.
The rush of home buyers — amid extremely low mortgage rates — has caused a lack of supply, which is unlikely to be resolved over the next five to 10 years “without more aggressive incentives for builders to add new units,” he said in a statement.
But it is the forecast for July 2022 that is interesting. A slowdown in home price growth across the board.
Lets see what happens to wage growth are three out of four Americans lose their Covid benefits as of today.