Home price growth accelerated fastest in Phoenix for the 25th straight month

With little inventory, home-price growth in the U.S. hit a record high in June, rising 18.6% from the same period last year, according to the S&P CoreLogic Case-Shiller Index.

June marked the highest annual rate of home price growth since the index debuted in 1987, beating out the 16.8% annual growth rate logged the month prior, in May 2021.

“While the housing market feels like it has legs that never get tired, inventory and affordability constraints are still expected to put a damper on price growth,” said CoreLogic Deputy Chief Economist Selma Hepp. “Some early data suggests that the buyer frenzy experienced this spring is tapering, though many buyers still remain in the market. Nevertheless, less competition and more for-sale homes suggest we may be seeing the peak of home price acceleration. Going forward, home price growth may ease off but stay in the double digits through year-end.”

The Case-Shiller 10-city home price growth index rose 18.5% over the 12 months that ended in June, compared with a 16.6% increase in May. The 20-city index rose 19.1%, following an annual gain of 17.1% in May.

Price growth occurred in all 20 cities tracked in the Case Shiller Index. As usual, Phoenix was the leader. For the 25th straight month, the desert city saw home-price growth, a 29.3% acceleration in June. San Diego had the second-fastest growth at 27.1%, while Boston, Charlotte, Cleveland, Dallas, Denver and Seattle all recorded record-high annual price gains. The lowest rate of home price growth occurred in Chicago, which saw an increase of 13.3% from June 2020.