The rise in house prices accelerated in January as the supply of homes for sale fell to a new low.
The S&P CoreLogic Case-Shiller National Housing Price Index, which measures average home prices in large metropolitan areas across the country, rose 19.2% year-over-year in January, up from an annual increase of 18.9% in last month.
Home prices rose at a record pace in 2021 and continued to rise this year, as demand for home purchases far exceeds the supply of homes for sale. Competition between buyers leads to bidding wars and many homes sell above their list price.
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The stock of homes for sale at the end of January fell to its lowest level since the National Association of Brokers began monitoring the total stock of existing homes in 1999.
“Housing prices continued to rise – even in the middle of a snowy January – as buyers rushed to find a home to outgrow rising mortgage rates,” said George Ratiu, chief economist and director of financial research at Realtor. com. News Corp,
parent company of The Wall Street Journal, operates Realtor.com.
The Case-Shiller index, which measures recurring sales data, reports a two-month lag. The stock rose in February but remained well below normal levels, NAR said. The median price of an existing home rose 15% in February from $ 357,300 a year earlier, according to NAR.
Mortgage rates have climbed to the highest level since 2019 in recent weeks. The combination of rising house prices and rising interest rates make home ownership inaccessible to some buyers.
“We may soon begin to see the impact of rising mortgage rates on home prices,” said Craig Lazzara, chief executive of S&P Dow Jones Indices.
The Case-Shiller 10-city index gained 17.5% during the year ending in January, compared to an increase of 17.1% in December. The index of 20 cities increased by 19.1%, after an annual increase of 18.6% in December. Price increases accelerated in 16 of the 20 cities.
Economists surveyed by the Wall Street Journal expected the 20-city index to rise 18.6%.
Phoenix had the fastest rise in house prices in the country for the 32nd consecutive month, at 32.6%, continuing its record in the first place. Tampa, Florida recorded the second fastest growth, with 30.8%.
A separate measure of rising house prices by the Federal Housing Financing Service, also released on Tuesday, found a 18.2% rise in house prices in January compared to the previous year.
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The rise in house prices accelerated in January
Source link The rise in house prices accelerated in January