According to the national housing price data released on Tuesday, housing prices rose at the fastest rate in February since November 2022.
According to the S&P CoreLogic Case-Shiller housing price index, national housing prices rose 6.4% compared to the same period last year.
Brian Luke (Brian Luke), head of the commodities, real estate and digital assets division of S&P Dow Jones Indices (S&P Dow Jones Indices), wrote in a press release: “After experiencing last year's decline, US housing prices have reached or are close to historic highs.”
“Our composite index of 10 to 20 cities is currently at an all-time high.”
An index measuring changes in housing prices in the country's 20 largest cities rose 7.3%, up from 6.6% last month. According to public data, analysts expect this data to show a 6.7% increase in price compared to last year.
Housing prices across the country rose 0.6% month-on-month, the first monthly increase since October last year. After seasonal adjustments, housing prices rose 0.4% in February.
Luke added: “This is the second time since housing prices reached their last peak in 2022, that house prices have risen in the face of economic uncertainty.”
The first decline came after the Federal Reserve (Federal Reserve) began a cycle of interest rate hikes. The second decline came after average mortgage interest rates peaked in October last year. Enthusiasm about the Federal Reserve's possible interest rate cuts and lower mortgage interest rates appears to have supported buyers' actions, driving the 10- and 20-City Composite Index to new highs.”
On a monthly basis, housing prices rose the most in Seattle, San Diego, and San Francisco. Last year, housing prices rose the most in San Diego, Detroit, and Chicago.
Thomas Ryan (Thomas Ryan), a real estate economist at Capital Economics (Capital Economics), wrote in a report to clients on Tuesday: “The severe shortage of existing homes for sale drove a strong 0.4% increase in housing prices (month-on-month) in February. This is in line with our forecast that the increase in housing prices (YoY) will reach 5% by the end of 2024.”
“Looking ahead, although high mortgage interest rates will stop housing prices from soaring, we believe that the combination of tight supply and rising buyer demand will keep housing prices growing steadily over the next few years.”
Mortgage interest rates are still above 7%, and the average interest rate for 30-year fixed mortgages is 7.17%, according to data from Freddie Mac last week.
