November 29, 2022

Home prices in the United States rose 18.4% in October

Aerial view of a drone in Miramar, Florida on January 26, 2021, showing homes in the neighborhood.

Joe Radell | Getty Images

U.S. home prices rose again in October as the housing market continued to rise following last year’s corona virus recession.

The S&P CoreLogic Case-Shiller 20-city home price index rose 18.4% on Tuesday, October. Gains marked a slight decline from a 19.1% year-on-year increase in September, but were in line with economists’ expectations.

All 20 cities recorded double-digit annual profits. The hottest markets are Phoenix (32.3%), Tampa (28.1%) and Miami (25.7%). Minneapolis and Chicago each recorded the smallest increase of 11.5%.

The housing market is strong due to rock-bottom mortgage rates, low supply of housing in the market and low demand from consumers who were locked out last year by the epidemic. Many Americans, tired of being together at home during epidemics, prefer to trade from apartments to houses or larger homes.

It is unknown at this time what he will do after leaving the post.

“We have already suggested that the strength of the U.S. housing market is driven to some extent by the change in location preferences as families react to the Govt epidemic,” Lazarus said. “Additional data will be needed to understand whether this demand reflects an increase that reflects the acceleration of purchases or permanent secular change that may occur over the next several years.

Last week, mortgage rates fell – to a benchmark 3.05% for 30 years, a fixed rate and a 2.66% for a 15-year fixed-rate home loan. With consistently low rates, credit markets are more concerned about the Omigron variant slowing economic growth than the highest inflation rates in nearly 40 years.

The National Association of Real Estate last week saw sales of previously occupied homes rise for the third month in November, to a seasonal adjusted annual rate of 6.46 million.