S&P Dow Jones Indices today released the latest results for the S&P CoreLogic Case-Shiller indices, the leading measure of US house prices. Data published for March 2021 show that US and US property prices continue to rise Phoenix goes with that highest price increase for private homes year-on-year.
More than 27 years of history is available for the data series, which is fully accessible at https://www.spglobal.com/spdji/.
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Price increase for private homes year-on-year
S&P CoreLogic Case-Shiller’s US NSA National Home Price Index, which covers all nine US census divisions, grew 13.2% annually in March, up from 12.0% the previous month. The annual increase of 10-City Composite was 12.8% after 11.7% in the previous month. The 20-City Composite recorded a year-on-year increase of 13.3% compared to 12.0% in the previous month.
Phoenix, San Diego, and Seattle reported the highest year-on-year growth among the 20 cities in March. Phoenix Pioneer with a price increase of 20.0% compared to the previous year, followed by San Diego with an increase of 19.1% and Seattle with an increase of 18.3%. All 20 cities recorded higher price increases at the end of the year March 2021 compared to the year up to February 2021.
month for month
Before the seasonal adjustment, the US National Index was up 2.0% from the previous month, while the 10-City and 20-City Composites were up 2.0% and 2.2%, respectively, in March.
After seasonal adjustments, the US National Index was up 1.5% month-over-month, and the 10-city and 20-city composites were up 1.4% and 1.6%, respectively. In March, all 20 cities reported increases before and after seasonal adjustments.
analysis
“Real estate prices continued to rise sharply March 2021“Says Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S & P DJI. “The National Composite Index was the 10th straight month that prices accelerated, up 13.2% year over year from 12.0% in February. This acceleration is also reflected in the 10- and 20-city composites (plus 12.8% and 13.3%, respectively). The strength of the market is broad-based: all 20 cities rose and all 20 gained more in the twelve months to March than in the twelve months to February.
“More than 30 years of S&P CoreLogic Case-Shiller data put these results in a historical context. The increase in the National Composite of 13.2% was last exceeded more than 15 years ago December 2005and is very comfortably in the top decile of historical performance. The unusual strength is reflected in all 20 cities. The price increases in March in each city are above the median for that city and are in the top quartile of all reports in 19 cities.
“These data are consistent with the hypothesis that COVID has encouraged potential buyers to move from urban apartments to suburban homes. That demand could represent buyers who have sped up purchases that would have been made over the next several years anyway. Alternatively, there could have been a secular change in preferences, which has led to a permanent shift in the demand curve for housing. It takes more time and data to analyze this question.
“Phoenix All cities recorded a 20.0% increase for the 22nd time in a row San Diego (+ 19.1%) and Seattle (+ 18.3%) closely behind. Although prices were strongest in the west (+ 15.1%) and the southwest (+ 14.8%), each region recorded double-digit increases. “
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