Demand for homes, supply constraints, and record-low mortgage rates have all led to a 15% increase in US house prices in the previous year. According to the S&P Case-Shiller national home price index, this is the fastest 12-month increase in house prices in at least the previous three decades.
House prices in the United Kingdom are up 13% year on year, according to figures released yesterday. Prices are also growing in Canada, Australia, New Zealand, and a number of other nations worldwide.
If you're a homeowner in one of the nations witnessing a housing price increase, we'd like to congratulate you - you're probably a little bit wealthier on paper than you were a year ago. If you're a potential house buyer, though, you're probably less pleased by this news - especially if your career has gone sideways or into reverse since the pandemic began.
Source: S&P Case Shiller National Home Price Index, chartr