While home sales have slowed nationwide, prices continue to post annual double-digit increases.
The S&P Case Shiller Home Price Index showing the average price in the 20 largest cities in February was up 20.2% from a year earlier, an acceleration from the previous month’s annual gain.
Across all metros, the average annual gain in February was 19.8%. The S&P Dow Jones Indices reports that is the third-highest annual gain in its 35 years of reporting the index.
“That level of price growth suggests broad strength in the housing market, which is exactly what we continue to observe,” said Craig Lazzara, managing director at S&P DJI.
“All 20 cities accelerated relative to January’s report. February’s price increase ranked in the top quartile of historical experience for every city, and in the top decile for 18 of them.”
The D.C. metro had an annual gain in February of 11.9%, and while that’s a healthy gain, it is the smallest year-over-year increase among the 20 biggest cities.
Annual gains were led by Phoenix, with prices up 32.9% from a year earlier. Tampa was up 32.6% and Miami was up 29.7%.
Phoenix led annual gains for the 33rd consecutive month in February.
S&P DJI does not expect rapidly rising home prices to continue.
“The post-COVID resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response. We may soon begin to see the impact of increasing mortgage rates on home prices,” Lazzara said.
Below are monthly and annual price gains in the 20 largest metros, as of S&P DJI’s February data.
