U.S. Home Prices Surge Most Since 2006 With Tight Inventory
(Bloomberg) -- U.S. home prices soared the most in 15 years, with low mortgage rates and a scant inventory of properties to buy fueling a tight housing market.
Nationally, the S&P CoreLogic Case-Shiller index of property values climbed 12% in February from a year earlier, the biggest jump since 2006. That followed an 11.2% gain in January.
Home prices in 20 U.S. cities jumped 11.9%, meanwhile, beating the median estimate of 11.8% in a Bloomberg survey of economists.
With inventory tight, especially in suburban markets, prices have jumped to record highs.
Read more and follow the story: What Will Happen to the U.S. Housing Market After the Pandemic?
“These data remain consistent with the hypothesis that Covid has encouraged potential buyers to move from urban apartments to suburban homes,” according to the S&P report released Tuesday.
Phoenix reported the biggest year-over-year gains among the 20 cities in February with a 17.4% increase. That was followed by San Diego at 17% and Seattle with a 15.4% increase.
Nineteen of the 20 cities reported higher price increases in the year ending February 2021 versus the year ending January 2021.
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