Price tags for homes continued to grow in February, marking yet another record gain in the process.
Home prices saw a 12% gain in February, up from 11.2% in January, according to the most recent S&P CoreLogic/Case-Shiller Indices. The increase marks the highest price gain in 15 years, according to experts.
Year-over-year, the 10-City Composite increased 11.7%, while the 20-City Composite increased 11.9%. Nineteen of the 20 cities reported higher price increases in the year ending February 2021 versus the year ending January 2021.
The following cities experienced the highest YoY gains: Phoenix (+17.4%), San Diego (17%) and Seattle (15.4%).
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.
What the Industry Is Saying:
“The market’s strength continues to be broadly based: all 20 cities rose, and 19 cities gained more in the 12 months ended in February than they had gained in the 12 months ended in January.
“More than 30 years of S&P CoreLogic Case-Shiller data help us to put February’s results into historical context. The National Composite’s 12.0% gain is the highest recorded since February 2006, exactly 15 years ago, and lies comfortably in the top decile of historical performance. Housing’s strength is reflected across all 20 cities; February’s price gains in every city are above that city’s median level and rank in the top quartile of all reports in 18 cities.
“These data remain consistent with the hypothesis that COVID has encouraged potential buyers to move from urban apartments to suburban homes. This demand may represent buyers who accelerated purchases that would have happened anyway over the next several years. Alternatively, there may have been a secular change in preferences, leading to a permanent shift in the demand curve for housing. Future data will be required to analyze this question.”
— Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices
“Accelerating price will continue for a few additional months due to significant supply shortages in most parts of the country. The work-from-home flexibility favors a reasonably affordable market. Yet, even the super expensive markets of San Francisco and New York are experiencing price strengthening.”
— Dr. Lawrence Yun, Chief Economist, National Association of REALTORS®
Jordan Grice is RISMedia’s associate content editor. Email him your real estate news to firstname.lastname@example.org.