The price of American homes is making an extraordinary run. According to the carefully followed S&P Case Shiller home price index, home prices nationwide rose 19.7% in July compared to the same month of last year.
Several factors quickly have pushed home values higher. One is mortgage rates that are near multidecade lows, despite inflation in some sectors of the economy. Additionally, people have relocated from the expensive east and west coast cities like New York and San Francisco to less expensive ones inland. Some of these smaller cities have a better perceived quality of life. A dollar earned tends to go farther, too. The ability of people to make these migrations has been driven in large part by the work from home economy created by the COVID-19 pandemic.
The latest CoreLogic Home Price Insights report looks at the U.S. housing market from January through August and provides some forecasts for next year. It analysis is broken down to the national, state and city levels. Frank Martell, president and CEO of CoreLogic, commented: “Home prices continue to escalate at a torrid pace as a broad spectrum of buyers drive demand for a limited supply of homes. We expect to see the trend of strong price gains 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 with August of last year. Only one state had a figure of over 30%. Idaho’s figure was 32.2%.
Although the research offers no reason for the increase in Idaho prices, several other pieces of data may help. The largest city in the state, Boise, is among the cities with the fastest-growing home prices in America.
Even prior to the effects of the pandemic, Boise was among the fastest-growing metros in America. From 2010 to 2020, according to the Census Bureau, its population rose 24.03% to 764,718.