Key Highlights
- Home prices jumped +10.4% in December 2020 compared with December 2019, according to latest S&P CoreLogic Case-Shiller Home Price Indices
- 20-city composite +10.1% from November’s +9.2%
- 10-city composite +9.8% from November’s 8.9%
Fastest Pace of Home Price Gains in Seven Years
According to the latest S&P CoreLogic Case-Shiller Home Price Indices report, December 2020 posted the fastest home price rise in seven years. Nationally, home prices jumped +10.4% compared with December 2019.
Not only did December’s home price increases represent the fastest and strongest annual growth rate, these price upticks rank as one of the largest annual gains in the +30-year history of the Indices.
Year-over-Year Price Change Ranks Within Top Deciles of All Reports
Craig Lazzara, managing director and global head of index investment strategy with S&P Dow Jones Indices, said, “2020’s +10.4% gain marks the best performance of housing prices in a calendar year since 2013…these data are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes.”
Lazzara speculated that such home price gains could express either a “secular shift” in housing demand or a mere acceleration of home buying that would have happened over the coming years.
Strongest Price Gains Continue to Be in Southwest (+10.5%) and West (+10.8%)
Phoenix, Seattle and San Diego maintained their respective leadership positions among the 19 of 20 composite cities (Detroit was excluded due to lagging reporting) in year-over-year home price gains in December 2020. Home prices in Phoenix increased +14.4% y/y; Seattle’s home prices rose +13.6% y/y; and home prices in San Diego increased +13.0% y/y in December.
10-City Composite and 20-City Composite Posted Broad-Based Home Price Strength
The 10-city composite annual increase in home prices came in at +9.8% in December, up from 8.9% in November. The 20-city composite indicated a gain of +10.1% in December, up from 9.2% in November.
Both the 10 and 20-city composite gains are exceeding winter 2007 levels.
Atlanta, Washington DC, Portland OR and Tampa are other cities with increasing home price gains.
Thanks to S&P CoreLogic Case-Shiller Home Price Indices latest report and CNBC.
