Nationally, prices increased 9.5% year-over-year in November according to the S&P CoreLogic Case-Shiller Home Prices Indices. CNBC says this is the largest annual advance in more than six years. Even compared to October’s year-over-year increase of 8.4%, the percentage has surged. In addition, this price increase marks one of the largest annual gains in the index’s history. These price increases continue to show homebuyers are still taking advantage of mortgage rates, which were 2.79% by December 1.
“Recent data are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “This may represent a true secular shift in housing demand, or may simply represent an acceleration of moves that would have taken place over the next several years anyway. Future data will be required to address that question.”
Phoenix, Seattle and San Diego continued to show the strongest price appreciation of all the major markets in November. Phoenix led the way with a 13.8% year-over-year price increase, followed by Seattle with a 12.7% increase and San Diego with a 12.3% increase. All 19 cities reported higher price increases in the year ending November versus the end of October.