Home prices surge by most in over 6 years
Prices rose 12.7% year over year in Phoenix
Homeowners are seeing the biggest increase in equity in six years. FOX Business’ Gerri Willis with more.
U.S. home prices rose in October at their fastest pace in more than six years as a stampede out of city centers resulted in the fewest properties listed for sale on record.
Home prices rose 8.4% year over year in October, according to the national Case-Shiller index, the highest since March 2014. Prices are now 25% above the peak that was reached ahead of the 2008 financial crisis.
“The data from the last several months are consistent with the view that COVID-19 has encouraged potential buyers to move from urban apartments to suburban homes,” Craig Lazzara, managing director at S&P Dow Jones Indices, said in a statement.
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The 20-city composite index found prices advanced 7.9% from a year ago in October, up from the previous month’s 6.6% gain.
All 19 cities that reported saw month-over-month price increases in October. Local reporting delays in Wayne County, Mich., due to COVID-19 restrictions meant Case-Shiller was not able to report an accurate reading for the Detroit metro area in October.
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Phoenix reported the strongest annual gain with prices up 12.7%, followed by Seattle and San Diego, which saw price increases of 11.7% and 11.6%, respectively.
New York reported the smallest gain, up 6% from a year ago. Chicago was next with a 6.3% increase.
The upcoming year will provide new challenges for both the economy and the housing market as new COVID-19 restrictions are enforced, according to Selma Hepp, deputy chief economist at CoreLogic.
However, the recently approved $900 billion stimulus package and policymakers potentially extending foreclosure moratoriums will “help housing market demand and ensure continued home price growth,” she said.