US Home Prices Post 19.1% Annual Gain in September | Economic news

By PAUL WISEMAN, AP economics writer

WASHINGTON (AP) – Home prices in the United States rose sharply in September, another sign that the housing market is booming in the wake of last year’s coronavirus recession.

The price of S&P CoreLogic Case-Shiller homes in 20 cities rose 19.1% in September from a year earlier. The sharp price increases marked a deceleration from the 19.6% year-over-year increase in August. Yet September prices in all 20 cities set new records.

Phoenix was the hottest market in the country, recording a 33.1% price increase. It was followed by Tampa (where prices rose 27.7%) and Miami (25.2%). The 20 cities all reported double-digit increases. The smallest gains were recorded in Chicago (up 11.8%) and Minneapolis (12.8%).

The housing market has been strong, thanks to lowest mortgage rates and pent-up demand from consumers stranded by the pandemic last year.

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“House prices continued to show remarkable strength in September, although the pace of price increases moderated slightly,” said Craig J. Lazzara, Managing Director of S&P Dow Jones Indices. He added: “We previously suggested that the strength of the US real estate market was due to the household reaction to the COVID pandemic, as potential buyers move from city apartments to suburban homes.”

Last week, the National Association of Realtors reported that sales of previously occupied homes rose 0.8% last month to a seasonally adjusted annual rate of 6.3 million, the highest annual pace since January. The Commerce Department announced last week that new home prices edged up 0.4% last month, with median prices rising nearly 18% from the previous year to a record 407 $ 700.

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