News Mortgage News Home Prices Have Risen at Dizzying Speed Off the Charts: The Visual Says It All By The Balance Editors The Balance Editors We’re a team of writers and editors with decades of experience researching and answering questions about personal finances. We believe everyone should feel confident when making money decisions, and that passion drives us to make The Balance the best place to learn about finances. learn about our editorial policies Published on September 29, 2021 Fact checked by Julianne Slovak Photo: valentinrussanov/Getty Images Home prices rose more quickly this spring and summer than at any point since the late 1980s, a trend that’s easy to spot on a chart of a widely used index. The S&P CoreLogic Case-Shiller Index rose to its highest reading ever in July, according to data released Tuesday. The nationwide, seasonally adjusted index, which has been rising steadily since 2012, posted four of its steepest monthly gains between March and June, while the most recent reading in July showed the sixth-steepest increase since the index was created in 1987. Home prices in July were a record 19.7% higher than a year earlier. “We have previously suggested that the strength in the U.S. housing market is being driven in part by a reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes,” Craig J. Lazzara, managing director and global head of index investment strategy at S&P DJI wrote in a commentary. “July’s data are consistent with this hypothesis.” Other factors keeping the heat on home prices: low mortgage rates and a low supply of homes for sale. The mix of high demand and a shortage of inventory has made for frenzied competition among homebuyers, although more recent data suggests the bidding wars have cooled down a bit since July. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. S&P Dow Jones Indices. “S&P Corelogic Case-Shiller Index Reports Record High 19.7% Annual Home Price Gain In July.”