The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, reported an 18.8% annual gain in December, in line with the growth from November. The 10-City Composite annual increase was 17%, a marginal increase from 16.9% in November, and the 20-City Composite posted an 18.6% year-over-year gain, up from 18.3% in November.
“For the year, the National Composite Index recorded a gain of 18.8%. This is the highest calendar year increase in 34 years of data and substantially ahead of 2020’s 10.4% gain,” says Craig Lazzara, managing director at S&P Dow Jones Indices. “The 10- and 20-City Composites rose 17% and 18.6%, respectively—a record for the 20-City Composite and the second-best year ever for the 10-City Composite.”
Among the 20 cities included in the report, Phoenix; Tampa, Florida; and Miami reported the highest year-over-year gains in December at 32.5%, 29.4%, and 27.3%, respectively. Fifteen of the cities reported higher price increases in the year ending December 2021 compared with the year ending November 2021.
“We have noted that for the past several months home prices have been rising at a very high but decelerating rate,” says Lazzara. “The deceleration paused in December, as year-over-year changes in all three composite indices were slightly ahead of their November levels. December’s 18.8% gain for the National Composite is the fifth-highest reading in history.”
Before seasonal adjustment, the U.S. National Index posted a 0.9% month-over-month increase in December, while the 10-City and 20-City Composites posted increases of 1% and 1.1%, respectively. After seasonal adjustment, the index posted a month-over-month increase of 1.3%, and the 10-City and 20-City Composites posted increases of 1.4% and 1.5%, respectively.
“The data in this release for December captures the market before mortgage rates began to skyrocket,” Nik Scoolis, manager of housing economics at Zonda, says. “Early signs from Zonda data points to continued home price appreciation to date in 2022, but we are watching for home price growth to decelerate as the year progresses due to affordability challenges.”
