Home prices continued to increase across the U.S. in March, according to data released for the latest S&P CoreLogic Case-Shiller Indices.
At the national level, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index rose by 13.2% YOY in March, up from 12% in February. The 10-City Composite annual increase rose 12.8%, up from 11.7%, while the 20-City Composite rose 13.3%, up from 12% in February.
Of the top 20 markets, Phoenix had the strongest year-over-year price increase at 20%. San Diego came in second with a 19.1% YOY home price increase, followed by Seattle at 18.3%. All of the top 20 cities reported higher price increases in the year ending March than in the year ending February.
“More than 30 years of S&P CoreLogic Case-Shiller data put these results into historical context,” says Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “The National Composite’s 13.2% gain was last exceeded more than 15 years ago in December 2005, and lies very comfortably in the top decile of historical performance. The unusual strength is reflected across all 20 cities; March’s price gains in every city are above that city’s median level, and rank in the top quartile of all reports in 19 cities.”
On a month-to-month basis, the U.S. National Index rose 2% before seasonal adjustment, while the 10-City and 20-City Composites rose 2% and 2.2%, respectively. After seasonal adjustment, the U.S. National Index rose 1.5% month over month, while the 10-City and 20-City Composites rose 1.4% and 1.6%, respectively.
“These data are consistent with the hypothesis that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” says Lazzara. “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. More time and data will be required to analyze this question.”
