Homebuilding stocks like Lennar rose Tuesday, following a record year-over-year increase in S&P CoreLogic Case-Shiller Index in April,
The 10-City Composite rose +14.4% year-over-year in April, compared to +12.9% in the previous month. This marked the highest gain in more than 30 years.
The 20-City Composite experienced a +14.9% year-over-year gain, up from +13.4% in the previous month. All 20 cities reported sharper price increases in the year ending April compared with the year ending March.
Craig Lazzara, managing director and global head of index investment strategy at S&P DJI,indicated that the demand increase may reflect an acceleration of purchases that “would have occurred anyway over the next several years."
"Alternatively, there may have been a secular change in locational preferences, leading to a permanent shift in the demand curve for housing," Lazzara said.