Q2 Recap 2021 | Erin Sykes, Chief Economist, Nest Seekers Record prices have experienced their biggest annual increase in more than two decades, with short inventory being the primary driver. US home prices saw an annual gain of 14.6% in April, the highest increase in more than 30 years, according to the S&P CoreLogic , Case-Shiller National Home Price Index. Interest Rates are expected to remain low until mid-2022, though inflation is accelerating far faster than expected (+4.2% in April, +5% in May +5.4% in June) and is debatably higher than what has been reported. Economic recovery combined with reflation has diminished the expectation of equity returns, thus shifting monetary allocation into alternative investments, like real estate. Individuals are using real estate investment as a hedge against continued inflation, thus if proven to be true, investment focus in hard assets will continue. Because inflation has been <2% for an extended period, individuals are more sensitive to increases.