Home Prices See One of the Biggest Jumps on Record
January 26, 2021
High demand and low supply are driving home prices higher than ever. Nationally, prices increased 9.5% in November as compared to a year prior, according to the S&P CoreLogic Case-Shiller Home Price Index.
That’s the strongest annual increase in nearly 7 years, and one of the largest annual gains in the index’s 30-year history, according to CNBC. The jump builds on October’s already impressive 8.4% annual increase.
The pandemic has driven demand, as urban apartment dwellers have fled to the suburbs. Some economists have begun to ask how long this trend will last. It remains to be seen if this is a permanent shift or just an acceleration of a trend. People tend to move away from cities as they age, and it is possible the recent activity has been merely been people moving earlier than they would have otherwise. Analysts expect the real estate market to remain hot throughout 2021, but there may be some moderation in the latter half of the year, once the pandemic is largely behind us.