Prices rose 19.8% year-on-year in February, higher than the 19.2% growth in January, according to the US S&P CoreLogic Case-Shiller National Home Price Index.
Phoenix, Tampa and Miami posted the highest annual gains among the 20 US 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 saw gains of 32.6% and 29.7%, respectively.
All 20 cities reported price increases in the year ending February 2022. In January, 16 cities experienced year-on-year growth. Prices were strongest in the south and southeast, but each region continued to show significant gains.
“US home prices continued to advance at a very fast pace in February,” said Craig J. Lazzara, managing director at S&P Dow Jones Indices. “This level of price growth indicates broad strength in the housing market, which is exactly what we continue to monitor.”
Although Lazarra noted that rising inflation, an increase in interest rates by the Federal Reserve and higher mortgage rates may soon take the momentum out of 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 Ratio, director of economic research at Realtor.com.
“Today’s S&P Case-Shiller Index highlights the housing market experiencing a renewed sense of urgency in February, as buyers worked through a small number of homes for sale in an effort to push forward with higher mortgage rates,” he said.
“For buyers, the jumps in prices and mortgage rates have translated into a sticky shock,” Ratio said.
For a median home financed with a 30-year loan, the monthly payment is $550 more than last year, he said.
But with more inventory expected to hit the market this spring and mortgage rates rising, housing analysts expect to see a lull in demand.
“Many buyers decide to step back and reassess their budgets and schedules,” Ratio said.
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