According to the latest report of the S&P CoreLogic Case-Shiller index, the main measure of US home prices, house prices continue to rise in the United States.
The index, which covers all nine US Census divisions, reported an annual increase of 20.6% in March, vs. at 18.0% of the previous month. The compound annual increase for 10 cities was 19.5%, compared to 18.7% in February, while the composite of 20 cities recorded a year-on-year gain of 21.2%, compared to 20.3% from the previous month.
According to the information, Tampa, Phoenix and Miami reported the highest year-over-year gains among 19 cities in March. Tampa led the way with a year over year price increase of 34.8%, followed by Phoenix with the 32.4% and Miami with 29%. While 17 of the 17 cities reported increases higher prices in the year ending March 2022 compared to the year ending February 2022.
“Those of us who have been anticipating a slowdown in the US home price growth rate we will have to wait at least another month,” said Craig J. Lazzara, CEO of S&P DJI. “For both the national and 20 city composites, the March reading was the highest in more than 35 years of data, with the growth rate of 10 cities in the percentile 99 of its own history”.
The strength of the composite indices suggests a very broad strength in the housing market. The 20 cities experienced double-digit price increases during the 12 months ending March, and price growth in 17 cities accelerated relative to the report February.
“For the first time in almost three years, the city with the fastest growth in housing prices was not Phoenix. In March, Tampa led all cities with a gain of 34.8%, with Phoenix (29.4%) and Miami (32%) taking silver and bronze honors. As was the case last month, prices were strongest in the South (+29.8%) and the Southeast (+29.6%), with each region continuing to show impressive gains, Lazzara noted.
“Mortgages are becoming more expensive as the Federal Reserve has begun to raise interest rates, suggesting that the macroeconomic environment may not support extraordinary growth in house prices for long more time. Although it can be safely predicted that price gains will start to slow, the timing of the slowdown is a more difficult decision,” explained the CEO of S&P DJI.
For more details on the S&P Dow Jones Indices, enter here.
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