US home prices rose nearly 20% year-over-year in February
Prices rose 19.8% year-over-year in February, an even faster rate than the 19.2% growth seen in January, according to the S&P CoreLogic Case National Home Price Index. Schiller in the United States.
Phoenix, Tampa and Miami posted the highest year-over-year gains among the 20 U.S. cities tracked by the index. Phoenix led the way for the 33rd consecutive month, with home prices rising 32.9% from a year earlier. It was followed by Tampa and Miami, which posted gains of 32.6% and 29.7%, respectively.
All 20 cities reported price increases in the year ending February 2022. In January, 16 cities reported year-over-year growth. Prices were highest in the south and southeast, but each region continued to post big gains.
“US home prices continued to grow at a very rapid pace in February,” said Craig J. Lazzara, managing director of S&P Dow Jones Indices. “This level of price growth suggests great strength in the housing market, which is exactly what we continue to observe.”
Although Lazarra noted that rising inflation, further interest rate hikes by the Federal Reserve and rising mortgage rates could soon slow the housing market.
The imbalance between strong demand from potential buyers and an insufficient supply of available homes has also pushed up home prices, said George Ratiu, head of economic research for Realtor.com.
“Today’s S&P Case-Shiller Index highlights a housing market experiencing an emergency boost in February as buyers worked on a small number of homes for sale in a bid to get ahead of the surge. mortgage rates,” he said.
“For buyers, jumps in prices and mortgage rates have translated into sticker shock,” Ratiu said.
For a median-priced home financed with a 30-year loan, the monthly payment is $550 higher than a year ago, he said.
But with more inventory expected to hit the market this spring and rising mortgage rates, housing analysts expect demand to slow.
“Many buyers decide to take a step back and re-evaluate their budgets and timelines,” Ratiu said.