Home prices surge by most since 2006
Prices rose 12% year over year in February
Cities like Dallas, Texas are benefiting from homebuyers from high-tax states with deep pockets. Real estate executive Rogers Healy weighs in on the 'new reality' of the business.
U.S. home prices in February rose at their fastest pace in 15 years as the COVID-19 pandemic accelerated the urge to move from urban apartments to suburban homes.
Home prices climbed 12% year over year in February, according to the national Case-Shiller index, making for the fastest increase since February 2006. Prices are now 29% above their 2006 peak.
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"The housing market is running full steam ahead," said Selma Hepp, deputy chief economist at CoreLogic.
The 20-City Composite rose 11.9% in February versus a year ago, up from 11.1% in the previous month.
All 20 of the index’s cities saw percentage gains over last year, led by Phoenix (+17.4%), San Diego (+17%) and Seattle (+15.4%). The smallest gains were in Chicago (+8.6%) and Las Vegas (+9.1%).
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Every region recorded double-digit percentage gains, paced by a 13% increase in the West and a 12.9% rise in the Southwest.
The price increases have been bolstered by continued signs of a strengthening U.S. economy, in addition to low mortgage rates and a shortage of homes available for sale.
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However, surging prices won’t last forever, cautions Hepp.
"More for-sale inventories and a narrowing pool of potential buyers will likely slow the speeding train, providing a clearer vision of what’s ahead," she said.