It’s the hottest housing market in America – 24/7 Wall St.
The US real estate market is on fire. Home values in some markets are up more than 30% year over year. In February, the hottest US market was Phoenix.
One of the reasons house prices have risen over the past two years is that tens of thousands of people have decided to migrate from major US coastal cities to those further inland. San Francisco and New York have house prices that are two or three times higher than national median existing home price, which hit a record high of over $375,000. (These are the 20 most expensive suburbs for homebuyers.)
And while construction of new homes has accelerated, supply chain issues have made building materials more expensive and shortages have delayed the completion of many homes under construction or in the planning stages.
Another reason for the rising prices is the new mobility of many Americans. The COVID-19 pandemic has caused companies to close their offices for security reasons. Millions of people have worked from home, and some companies won’t bring them back to traditional offices.
One of the driving forces behind home buying last year was near-historic low mortgage rates, below 3%. Federal Reserve rate increases mean those mortgage rates are no longer available, which could reduce demand in 2022. Already, sales of existing homes fell in March, the National Association of Realtors reported. (That’s the mortgage rate in America every year since 1972.)
The gold standard for home price research is the S&P CoreLogic Case-Shiller Indices, which are published monthly. Figures for February showed house prices across the country rose 19.8% from the same month last year. Craig J. Lazzara, Managing Director of S&P DJI, commented, “The 19.8% year-over-year change in the National Composite for February was the third highest reading in its 35-year history.
The research also examines price changes in 20 of America’s largest metropolitan areas. These increases were uneven in February. To find the hottest housing market in the United States, 24/7 Wall St. examined the evolution of housing prices in the metropolitan areas of S&P CoreLogic Case-Shillerthe recent release of.
The market with the biggest increase was Phoenix, where prices in February rose 32.9% year-over-year. This is the 33rd consecutive month in which Phoenix has recorded the strongest increase in house prices. It was closely followed by Tampa, Florida, where prices rose 32.6%, and Miami, where house prices rose 29.7% year-over-year.
At the extreme end of the spectrum, home prices in Washington have risen only 11.9% per year.
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