By Manuel Gutierrez, Consulting Economist to NKBA

 

Strong demand for housing continues to steadily drive-up prices of new and existing single-family homes.

  • The Case-Shiller home price index, which tracks trends in the price of existing homes, rose by 1.3 percent in December vs. the previous month and is 18.8 percent higher since the end of 2020.
  • House prices have risen by at least one percent a month since August 2020.
  • Given the robust housing demand combined with record-low inventory, home prices should remain high for the near future.
  • While higher house prices are freezing some out of the market, it translates into wealth increases for the 83.8 million households who already own a home.