The U.S. housing market tapped on the brakes in recent months after reaching scorching highs.
The S&P CoreLogic Case-Shiller Index reported a 19.1 annual gain in home prices in October, down from 19.7 percent the previous month. It was the second consecutive month of declining price gains.
But the 19.1 percent gain is still the fourth-highest reading in the 34 years covered by S&P Dow Jones Indices.
Phoenix, Tampa, and Miami had the highest year-over-year gains in October among the 20 cities analyzed. Phoenix reported a 32.3 percent year-over-year price increase, while Tampa had a 28.1 percent increase and Miami notched a 25.7 percent increase.
Every region recorded double-digit gains, but the South and Southeast regions posted the highest, according to the Index.
The housing market continues to remain on a torrent pace since the onset of the pandemic. Driven by record low mortgage rates and a demand for more space during stay at home orders, people have flocked to buy single-family homes.
Single-family rental firms and iBuyers have also added to the frenzy, leading some analysts to question whether the housing market’s growth is sustainable. Housing analyst Ivy Zelman, who predicted the last housing crash, warned in November that prices are becoming out of line with actual demand.
The S&P Index, however, shows prices are still rising across all metro areas even despite struggles by homebuilders to construct new homes.
Lennar reported that backlogs grew to 26 percent year-over-year, to 23,771 homes at the end of the fourth quarter. In a a teleconference with analysts this month, company executives called it a game of “Whac-A-Mole” as to when materials arrive.