In-Depth: Where Home Prices Are Rising
- Home prices in March were 13.2% higher in March, compared with March 2020, according to the S&P CoreLogic Case-Shiller National Home Price Index.
- The 10-City Composite rose 12.8% year over year, up from 11.7% in the previous month. The 20-City Composite increased 13.3%, up from 12.0% in February.
Home prices in March were 13.2% higher in March, compared with March 2020, according to the S&P CoreLogic Case-Shiller National Home Price Index.
That is up from the 12% annual gain in February, and it marks the 10th straight month of accelerating home prices.
The 10-City Composite rose 12.8% year over year, up from 11.7% in the previous month. The 20-City Composite increased 13.3%, up from 12.0% in February.
Cities with the strongest price gains continue to be Phoenix, San Diego and Seattle. Phoenix sits at the top with 20% year-over-year price increase, followed by San Diego with a 19.1% increase and Seattle prices rising 18.3%. All 20 cities reported higher price increases in the year ending March 2021 versus the year ending February 2021.
“These data are consistent with the hypothesis that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, managing director and global head of index investment strategy at S&P DJI.
“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,” he added.
There were just 1.16 million homes on the market in April, a 20% drop year over year, according to the National Association of Realtors. The continued shortage of homes, especially at the lower end of the market, forecasts that home prices will not cool off any time soon.
Sales are beginning to weaken, and prices usually follow, but again, the usual trends are not dependable in this very unusual housing market.
Altos Research, a Mountain View, Calif.-based real estate market data firm, looked at every city in the United States with at least 100 homes on the market to find out where asking prices for single-family homes had risen the most since last year (though Altos does not track condominiums).
Boston Real Estate and the Bottom Line
The number one place in the country where home prices are rising … Lexington MA.
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