Housing price growth will rise at the end of 2020 – the fastest pace in eight years

Housing prices in the United States accelerated in the last month of 2020 – the fastest pace in eight years. The results complement what was a record year for the housing market despite the COVID-19 pandemic.

Standard & Poor’s said on Tuesday that its S&P CoreLogic Case-Shiller national house price index showed an annual gain of 10.4% in December, up from 9.5% in November – the fastest growth rate since 2013. 20-City Composite showed a 10 , 1% annual profit, up from 9.2% last month – beats estimates of a profit of 9.90% compared to the year, according to agreement compiled by Bloomberg.

“Housing prices ended in 2020 with double-digit gains. The trend of accelerating prices that began in June 2020 has now reached its seventh month, says Craig J. Lazzara, CEO and Global Head of Index Investment Strategy at the S&P Dow Jones Indices, in a press release. He noted that the annual profit in December is ranked within the highest decile of all its reports, which go back more than 30 years.

“The market strength remains broadly based: 18 of the 19 cities for which we have December data increased and 18 cities gained more in the 12 months ending in December than they had gained in the 12 months ending in November,” Lazzara said.

Once again, Phoenix led the 20-City Composite for the 19th month in a row, placing a 14.4% annual profit. Seattle and San Diego followed after increasing by 13.6% and 13% respectively compared to the previous year.

Last year, housing prices fell in May and June due to COVID-19 lock-in but which quickly turned around in the summer as historically low interest rates and pent-up demand drove housing activity.

“Sustained buyer demand due to a severely underdeveloped housing market has undeniably pushed housing prices to new highs by 2020. The steady decline in mortgage rates to new record lows, especially in December, has also helped widen the price for some buyers and allowed them to bid higher than they should could have if prices were higher – which further accelerated price growth, says CoreLogic Vice Chief Economist Selma Hepp, in a statement before the results. “When we look forward to 2021, the pressure on housing prices is likely to remain strong until either housing interest rates increase or more homes are for sale.”

Last week, reported the National Association of Realtors the average existing home sales price rose 14.1% to $ 303,900 in January from the same time a year ago. It is also said that the number of homes for sale reached a full-time level in January.

“The housing market is still well supported by low interest rates, tight supply and a change in demand for suburbs and lower cost cities where homeowners are more accessible,” Nomura said in a research note before the results. “This should keep up the pressure on housing prices.”

Amanda Fung is the editor of Yahoo Finance.

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