US Home Prices Rise 18.4% After Last Year’s COVID-Fueled Recession | [BN] Homepage
By PAUL WISEMAN AP Economics Writer
WASHINGTON (AP) – Home prices in the United States rose again in October as the housing market continues to grow following last year’s coronavirus recession.
The S&P CoreLogic Case-Shiller Home Price Index in 20 cities, released on Tuesday, was up 18.4% in October from a year earlier. The gain marked a slight deceleration from a 19.1% year-over-year increase in September, but was roughly in line with what economists expected.
All 20 cities posted double-digit annual gains. The hottest markets were Phoenix (up 32.3%), Tampa (28.1%) and Miami (25.7%). Minneapolis and Chicago posted the smallest increases, 11.5% each.
The housing market has been strong thanks to the lowest mortgage rates, a limited supply of housing in the market and pent-up demand from consumers stranded by the pandemic last year. Many Americans, tired of being locked in their homes during the pandemic, are looking to move from apartments to houses or larger homes.
“Home price growth will slow down further over the coming year, but will continue to increase,” said Danielle Hale, chief economist at Realtor.com. “As housing costs occupy a larger share of homebuyers’ paycheques, buyers will get creative. Many will take advantage of the continued flexibility of their workplace to relocate to the suburbs where, despite increases in house prices, many may still find a price per square foot lower than the surrounding area. cities. “