Home prices jump by record amount

Home prices in the U.S. rose at a record pace in July, as buyers bid up prices in a limited-supply market.

The S&P CoreLogic Case-Shiller 20-city home price index increased 19.9 percent in July compared to the same month in 2020, marking the biggest increase since record-keeping began in 2000. The gains follow a 19.1 percent year-over-year jump in June.

Prices hit all-time highs in July in 19 of 20 cities analyzed. The one outlier city was Chicago, where prices tracked sit at just 0.3 percent below their 2006 peak.

Home sales have increased this year, largely because of low mortgage rates and individuals seeking more space to live in amid the pandemic.

Sales of existing homes increased by 16 percent in the first eight months of 2021 compared to the same period last year, and they're up 12 percent compared to a comparable period in 2019, according to The Associated Press.

Phoenix, San Diego and Seattle all reported the highest year-over-year increases among the 20 cities observed in July, according to the S&P CoreLogic Case-Shiller Indices.

Phoenix saw a 32.4 percent year-over-year price increase, followed by San Diego at 27.8 percent and Seattle at 25.5 percent.

The increased prices are making it more difficult for younger potential buyers to purchase homes. As a result, first-time homebuyers decreased to 29 percent last month, which was the lowest rate tracked since January 2019, according to the National Association of Realtors (NAR).