US Home Prices Are Rising at Fastest Pace in Years
December 30, 2020
Home prices in October grew at the fastest pace in years, as sky-high demand and record-low inventory drive prices up. Prices were 7.9% in October than they were twelve months prior, according to the S&P CoreLogic Case-Shiller 20-city home price index. That’s the largest 12-month increase since June 2014.
There is some concern that prices may be rising too quickly. Sales of newly built homes in November were the first bit of disappointing news the sector has seen recently. Sales were down 11% from the year before and missed expectations, with 841,000 new homes sold versus the 995,000 analysts had expected. Still, sales for the month were up nearly 21% year-over-year, so there is little concern that the sector is contracting, rather it is beginning to moderate after a red hot period.