Nov. U.S. Home Prices Up 18.8% Year-to-Year

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February 23, 2022
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The increase in the top 10 and top 20 cities in S&P CoreLogic Case-Shiller Index’s was slightly less, but Phoenix, Tampa and Miami had highest year-over-year gains.

NEW YORK – A leading measure of U.S. home prices, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, reported an 18.8% annual gain in November. While a strong rate of price appreciation, however, it’s down from 19.0% in the previous month. The index covers all nine U.S. census divisions.

The index’s 10-City Composite (largest cities) found an annual increase of 16.8%, down from 17.2%. The 20-City Composite posted an 18.3% year-over-year gain, down from 18.5% one month earlier.

Phoenix, Tampa and Miami reported the highest year-over-year gains among the 20 cities in November.

“Phoenix’s 32.2% increase led all cities for the 30th consecutive month,” says Craig J. Lazzara, Managing Director at S&P DJI. “Tampa (up 29.0%) and Miami (up 26.6%) continued in second and third place … Prices were strongest in the South and Southeast (both +25.0%), but every region continued to log impressive gains.”

Month-over-month

Before seasonal adjustment, the U.S. National Index posted a 0.9% month-over-month increase in November, while the 10-City and 20-City Composites posted increases of 0.9% and 1.0%, respectively.

After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.1%, and the 10-City and 20-City Composites posted increases of 1.1% and 1.2%, respectively.

In November, 19 of the 20 cities reported increases before seasonal adjustments, but all 20 cities reported increases after seasonal adjustments.

“For the past several months, home prices have been rising at a very high, but decelerating, rate,” says Lazzara. “That trend continued in November 2021 … (but) in all three cases, November’s gains were less than October’s.”

Still, Lazzara says November’s increase remains noteworthy, because it’s “the sixth-highest reading in the 34 years covered by our data – and the top five were the months immediately preceding November.”

Index analysts have suggested for months that housing market strength is driven, in part, by a “change in locational preferences as households react to the COVID pandemic.” However, it’s still too soon to tell if the change in demand is unique or largely consumers who would have made the same buying decisions with COVID-19 but strung them out over the next several years.

“In the short term, meanwhile, we should soon begin to see the impact of increasing mortgage rates on home prices,” adds Lazzara.

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