CoreLogic says that April saw further acceleration in the growth of housing prices. The company, which reported an 11.3 percent annual increase in housing prices in March now says that appreciation grew to 13 percent in April. It was the third consecutive month of double digit gains and the highest rate of annual appreciation since February 2006. The increase from March to April was 2.1 percent.

The company, in its monthly report on its Housing Price Index (HPI) says, "Sparse inventory and high demand continues to place upward pressure on home prices, creating challenges across generations as buyer preferences shift. Younger Millennials continue to enter the market in droves while older Millennials look to upgrade and upsize their homes."

A recent CoreLogic consumer survey found that 64 percent of both older and younger Millennials said they were looking to buy because they needed more space. Seventy-two percent of Baby Boomers listed the desire for a new location as the main reason for wanting to purchase a new home. However, in response to rising prices, Boomers-who own 54 percent of the nation's homes-may wait to sell, creating further inventory pressures for older millennials seeking move-up purchases.

"As older homeowners become more comfortable with listing their homes, they are faced with the reality that if they sell, they may get a smaller home for the same price as what they already have," said Frank Martell, president and CEO of CoreLogic. "Rather than decreasing their financial burden and cashing out equity to support their retirement, baby boomers may choose to stay put - which could exacerbate inventory challenges."

"Baby boomers are staying in their homes longer, slowing the pace with which existing homes come on the for-sale market," said Dr. Frank Nothaft, chief economist at CoreLogic. "Owner occupants today have been in their homes for a median of 13 years, about 50 percent longer than the previous generation."

In another indication that the pandemic is having an impact on housing preferences, the company found that detached properties appreciated at twice the rate of attached properties in April, 14.7 percent versus 7.2 percent, as prospective buyers continue to seek out more space.

Price gains remain highest in the West. Two Idaho cities, Coeur d'Alene and Boise City, had the highest annual appreciation in April, with increases of 31.4 percent and 28.6 percent, respectively. Idaho (27.2 percent) and Arizona (20.4 percent) were numbers one and two among the states, but South Dakota also ranked high at 19.3 percent as new home buyers seek out more affordable options, space, and low property taxes.

CoreLogic says it expects that affordability and supply challenges will soon drive potential buyers out of the market. The company's forward looking HPI projects price growth will slow to 2.8 percent by April 2022.