Miami, Florida – Home prices in the United States saw a significant increase in February 2024, marking the fastest growth since November 2022. The latest data from the S&P CoreLogic Case-Shiller Home Price Index revealed a nationwide rise of 6.4% compared to the same month last year.
According to Brian Luke, a commodities and real assets expert at S&P Dow Jones Indices, the surge in U.S. home prices has pushed them to all-time highs following a decline in the previous year. The 10- and 20-City Composite indices currently reflect these record-high prices.
In the report, it was noted that a gauge monitoring price changes in 20 of the largest cities in the country showed a 7.3% increase, surpassing the 6.6% growth from the previous month. Analysts had anticipated a 6.7% rise in prices year-over-year, as indicated by data from Bloomberg.
The national average also saw a 0.6% increase from the previous month, the first monthly rise since October. On a seasonally adjusted basis, prices in February rose by 0.4%.
Luke highlighted that despite economic uncertainties, home prices have seen another upturn since the last peak in 2022. Factors like potential Federal Reserve cuts and lower mortgage rates have fueled buyer enthusiasm, resulting in the 10- and 20-City Composites reaching new heights.
Cities like Seattle, San Diego, and San Francisco experienced the largest increases in home prices on a monthly basis, while San Diego, Detroit, and Chicago saw the most significant price hikes year-over-year.
Thomas Ryan, a property economist at Capital Economics, predicted that tight supply conditions and growing buyer demand would sustain solid house price growth in the coming years, even with the presence of high mortgage rates preventing a housing boom.
Looking forward, the combination of limited housing supply and increased demand is expected to support continued growth in house prices, according to experts in the field.