The price of American homes is racing tremendously. According to the carefully tracked S&P Case Shiller Home Price Index, house prices have risen across the country 19.7% in July compared to the same month last year.
Several factors quickly drove home values up. One is mortgage rates, which are close to their lowest level in several decades, despite inflation in some sectors of the economy. In addition, people have moved from expensive cities on the east and west coasts like New York and San Francisco to cheaper cities in the interior. Some of these smaller towns have a better perceived quality of life. A dollar earned also tends to go further. The ability of people to make these migrations has been largely due to the work of the home economy created by the COVID-19 pandemic.
The last CoreLogic House Price Overview The report examines the US real estate market from January to August and provides forecasts for next year. Its analysis is broken down at the national, state and municipal levels. Frank Martell, President and CEO of CoreLogic, commented, “Home prices continue to climb at a breakneck pace as a wide range of buyers stimulates demand for a limited supply of homes. We expect the trend of sharp price increases to continue indefinitely with large amounts of capital chasing too few assets. “
The CoreLogic figure for the increase in home prices in August was 18.1%, compared to August of last year. Only one state had a figure above 30%. Idaho’s figure was 32.2%.
While the research offers no reason for Idaho’s price increase, several other pieces of data may help. The largest city in the state, Boise, is among the cities with the the prices of the fastest growing homes in America.
Even before the effects of the pandemic, Boise was among the fastest growing subways in America. From 2010 to 2020, according to the Census Bureau, its population increased 24.03% to 764,718.
Click here to see which are the most expensive cities to buy a house.