U.S. home prices surged another 20% in February, with Miami up 30%

Nationwide price index posted third-highest annual gain in 35 years

National /
Apr.April 26, 2022 04:30 PM
(iStock) Houses, Prices, Rising

(iStock)

Rising mortgage rates haven’t put a damper on home prices — yet.

The S&P CoreLogic Case-Shiller Index posted a 19.8 percent annual gain in February. The figure is an increase from the 19.1 percent gain posted in January and the third-largest reading posted in 35 years.

The 10-city composite, comprising the 10 largest metros, gained 18.6 percent year-over-year, up from 17.3 percent in January. Meanwhile, the 20-city composite posted an annual gain of 20.2 percent, an increase from 18.9 percent in January.

Craig Lazzara, S&P DJI managing director, noted that each composite reflected an acceleration of price growth from January’s levels.

“U.S. home prices continued to advance at a very rapid pace in February,” Lazzara said.

For the 33rd consecutive month, Phoenix saw the largest growth, with a 32.9 percent price increase from 2021. Two Florida cities, Tampa and Miami, finished in second and third place with 32.6 percent and 29.7 percent annual increases, respectively. All 20 cities analyzed reported higher price increases year-over-year in February than January.

The South led all regions with a 28.1 percent annual increase in home prices. The Southeast was close behind, boasting a 27.9 percent annual increase. All regions posted year-over-year gains.

Home prices have surged since the start of the pandemic as buyers looked to take advantage of remote work opportunities to settle into more comfortable homes. Low inventories across the country have kept prices on the rise, as buyers have been willing to pay well above ask to win bidding wars.

A slowdown could be coming soon, though. Federal policy has led to a drastic hike in mortgage rates, which are still historically low, but rising quickly. The prospect of increasing rates puts even more pressure on potential buyers.

One sign of a shift: in the four weeks ending April 3, 12 percent of homes listed for sale had their prices reduced, according to Redfin, up from 9 percent a year earlier. It was the highest mark in four months.

“The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer,” Lazzara said. “We may soon begin to see the impact of increasing mortgage rates on home prices.”





    Related Articles

    arrow_forward_ios
    From left: Sotheby’s Daniel de la Vega and Reagan Jefferies with Brevard County
    One Sotheby’s picks up Brevard County brokerage
    One Sotheby’s picks up Brevard County brokerage
    US HUD Secretary Marcia Fudge (Getty, iStock)
    A heavy crown: HUD secretary declares Miami “epicenter” of nation’s housing crisis
    A heavy crown: HUD secretary declares Miami “epicenter” of nation’s housing crisis
    South Florida homes
    South Florida home sales plunge in May, as prices continue rising
    South Florida home sales plunge in May, as prices continue rising
    10181 US Highway 98 West and 39 Sandy Dunes Circle (LoopNet)
    Florida Panhandle estate sold for $25M
    Florida Panhandle estate sold for $25M
    Netscape co-founder Jim Clark and 2000 South Ocean Boulevard in Manalapan (Getty, Sotheby's)
    Manalapan compound poised to sell for Florida-record $175M
    Manalapan compound poised to sell for Florida-record $175M
    355 Ocean Boulevard and Ryan Serhant (Photos by SERHANT/Mike Ruiz, Illustration by The Real Deal)
    Ryan Serhant plans South Florida expansion, launches $100M Golden Beach listing
    Ryan Serhant plans South Florida expansion, launches $100M Golden Beach listing
    Residential sales fall in Southern Florida
    Residential sales fall in April across South Florida
    Residential sales fall in April across South Florida
    Hassan Whiteside and 528 Lakeview Court in Miami Beach (Getty, Joe Azar/Compass)
    NBA’s Hassan Whiteside lists Miami home for $23M, triple what he paid for it
    NBA’s Hassan Whiteside lists Miami home for $23M, triple what he paid for it
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...