In February, home prices rose 4.2 percent year-over-year, according to the latest S&P CoreLogic/Case-Shiller Indices—a 3.9 percent gain from the previous month.
The complete data for the 20 markets measured by S&P:
Las Vegas, Nev.
Los Angeles, Calif.
New York, N.Y.
San Diego, Calif.
San Francisco, Calif.
The data shows that in February, the coronavirus pandemic had not yet negatively impacted the markets.
“Today’s report covers real estate transactions closed during the month of February, and shows no signs of any adverse effect from the governmental suppression of economic activity in response to the COVID-19 pandemic,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “As much of the U.S. economy was shuttered in March, next month’s data may begin to reflect the impact of these policies on the housing market.”
According to Lazzara, February displayed continued growth from the second half of 2019.
“The National Composite Index rose by 4.2 percent in February 2020, and the 10- and 20-City Composites also advanced (by 2.9 percent and 3.5 percent, respectively),” said Lazzara. “Results for the month were broad-based, with gains in every city in our 20-City Composite; 17 of the 20 cities saw accelerating prices. The National, 10-City, and 20-City Composites all rose at a faster rate in February than they had in January.”
At a regional level? Phoenix claimed the top spot for the ninth consecutive month, experiencing a 7.5 percent gain in February. In addition, Seattle increased by 6 percent, and Tampa and Charlotte matched with 5.2 percent increases. The West and Southeast proved strong in February, with prices weaker in the Midwest and Northeast.
Bill Banfield, vice president of capital markets at Quicken Loans, said the slowdown in March could impact prices in the future; however, it is too soon to tell what the COVID-19-sparked derailment will lead to.
“Home prices continued to rise through the first two months of the year. Prior to the coronavirus spreading throughout the United States, housing demand remained strong with interest rates becoming increasingly attractive,” said Banfield. “Looking forward, potential buyers and sellers have been sidelined until they can safely shop for a home. The big question now is how quickly the home listings will awaken after pause or will unemployment drag down purchase activity going forward. If buyers come back faster than sellers, it could cause prices to push even higher as buyers compete over the slim choices.”