- July 9, 2021
- Posted by: Stratford Team
- Category: Business
Home prices continue to soar nationwide. According to the S&P Corelogic Case-Shiller Index, prices nationwide increased 14% in the past year. This is the fastest rate of increase in more than 30 years. Among 20 large metropolitan areas, the biggest gains came in at more than 20% in Phoenix, San Diego and Seattle.
This latest increase puts prices about 25% more than the 2007 peak. Prices are about twice as high as the 2012 trough. That trough followed the 30% decline during the Great Recession and housing bubble of 2007-2008.
The latest increases are due to multiple factors.
First, microscopically low interest rates make mortgages more affordable. Like many big-ticket items purchased on credit, housing prices are often more sensitive to monthly payments than to purchase price. This is true from the standpoint of the buyer looking at his or her budget as well as the lender looking to the security of the loan.
Second, the COVID-19 lockdown increased the…
