According to the S & P Core Logic Case-Shiller US Home Price Index, prices in February rose 19.8% year-on-year, even increased than the 19.2% rise seen in January.
Phoenix, Tampa, and Miami reported the very best year-over-year progress among the many 20 US cities tracked in the index. Phoenix has taken the lead with home prices rising 32.9% year-on-year for 33 consecutive months. This was adopted by Tampa and Miami, with will increase of 32.6% and 29.7%, respectively.
All 20 cities reported worth will increase in the yr ending February 2022. In January, 16 cities grew year-on-year. Prices had been highest in the South and Southeast, however continued to rise considerably in all areas.
Craig J. Razara, Managing Director of the S & P Dow Jones Index, stated: “That stage of worth will increase suggests the broader power of the housing market, which is strictly what we proceed to watch.”
Razara identified that rising inflation, additional Fed price hikes, and rising mortgage charges may shortly lose momentum in the housing market.
George Ratiu, financial analysis supervisor at Realtor.com, stated the imbalance between robust demand from future patrons and an insufficient provide of accessible properties can also be pushing up home prices.
“Today’s S & P Case-Shiller Index highlights the housing market, which is experiencing a brand new sense of urgency in February as patrons take a look at a small variety of sellers forward of the mortgage surge.” rice subject.
“For patrons, hovering prices and mortgage charges have became a sticker shock,” Ratiu stated.
He stated month-to-month funds for average-priced properties financed on a 30-year mortgage are $ 550 increased than they had been a yr in the past.
However, housing analysts anticipate demand to chill as extra inventories are anticipated to hit the market this spring and mortgage charges are rising.
“Many buyers have decided to take a step back and reassess their budgets and timelines,” says Ratiu.
