Milwaukee, Wisconsin 2021-02-23 10:07:01 –
AP Economics Writer
Washington (AP) — US home prices soared at the fastest pace in almost seven years in December due to low mortgage rates and the move of Americans from crowded urban environments to suburban homes.
The S & P Core Logic Case-Shiller 20 City Home Price Index, released on Tuesday, rose 10.1% year-on-year in December. The year-end surge was the largest since April 2014, following a significant increase of 9.2% year-on-year in November.
Home prices in December rose 14.4% in Phoenix, 13.6% in Seattle and 13% in Seattle. But prices have risen everywhere. Chicago, which recorded the slowest price increase, saw a 7.7% increase. Detroit was not included in the year-over-year figures due to a delay in records management due to the coronavirus pandemic.
Craig Lazara, Global Head of Index Investment Strategy at S & P DJI.XX, said: But he said it was unclear if this trend would continue.
Prices are also being pushed up by the limited supply of homes on the market. Real estate economist Matthew Speakman said, “With relatively low mortgage rates and a wave of enthusiastic buyers, this housing competition and subsequent strong price increases could significantly diminish in the near future. The sex is low. ” Jiro.
Home consumers also have residential areas. Global Data’s Neil Saunders commented on year-end revenue and revenue spikes at the Home Depot, calculating that Americans spent $ 402 each on home renovation giants last year.
The housing market is resilient throughout the coronavirus pandemic, supported by mortgage bottoms. The benchmark 30-year fixed rate mortgage average interest rate rose from 2.73% last week to 2.81%, well below the previous year’s 3.49%.
However, the Commerce Department reported last Thursday that US home construction fell 6% in January and single-family home construction fell 12.2%. Apartment construction rose 16.2%. Still, building permit applications, which generally indicate where home construction is heading, surged in January.