The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, reported a 19.8% annual gain in February, up from 19.1% in the previous month. The 10-City Composite annual increase was 18.6%, up from 17.3% in the previous month, while the 20-City Composite posted a 20.2% year-over-year gain, up from 18.9% in the previous month.
“U.S. home prices continued to advance at a very rapid pace in February,” says Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “The National Composite Index recorded a gain of 19.8% for the 12 months ended February 2022; the 10- and 20-City Composites rose 18.6% and 20.2%, respectively. All three composites reflect an acceleration of price growth relative to January’s level.”
Among the 20 cities in the February report, Phoenix and Florida’s Tampa and Miami reported the highest year-over-year gains, led by Phoenix’s 39.2% YOY price increase. All 20 cities analyzed reported higher price increases in the year ending February 2022 versus the year ending January 2022. Lazzara says prices were strongest in the South (+28.1%) and Southeast (+27.9%), but all nine regions “continued to show impressive gains.”
“February’s price increase ranked in the top quartile of historical experience for every city, and the top decile for 18 of them,” Lazzara says.
Before seasonal adjustment, the U.S. National Index posted a 1.7% month-over-month increase in February, while the 10-City and 20-City Composites both posted increases of 2.4%. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.9%, and the 10-City and 20-City Composites posted increases of 2.3% and 2.4%, respectively.
“This latest report shows just how out of whack the housing market was to start the year,” says Zonda chief economist Ali Wolf. “The report, however, is backward looking and, in a fast-moving market, doesn’t tell the story on the ground. With interest rates up nearly 200 basis points since the start of the year, all signs point to cooling price growth later this year.”
