Home prices increased 12.0% year-over-year in February, up from a 11.2% annual increase in January, according to the latest S&P CoreLogic Case-Shiller Index. It’s the highest recorded year-over-year gain since February 2006.
The 10-City Composite annual increase was 11.7% (up from 10.9% in January). The 20-City Composite was 11.9% (up from 11.1% in January). The increases were across the board as home prices in all 20 cities rose.
“These data remain consistent with the hypothesis that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” S&P Spokesperson Craig Lazzara said in a statement. “This demand may represent buyers who accelerated purchases that would have happened anyway over the next several years. Alternatively, there may have been a secular change in preferences, leading to a permanent shift in the demand curve for housing.”
Phoenix, San Diego and Seattle reported the highest year-over-year gains among the 20 cities, reporting increases of 17.4%, 17.0% and 15.4%, respectively.
The full Case-Shiller report can be found here.
