Blog Utopia Management

Contact Utopia

Free Leasing
Affordable Rates
Discounts On Larger Portfolios
25+ years Experience
Your search results

National Home Prices Rising Faster Than Ever

New data from the S&P CoreLogic Case-Shiller U.S. National Home Price Index shows that home prices across the country have skyrocketed in the last year. Prices are reflecting the largest year-over-year increase seen in the last 34 years, with an average increase of 18.8%, almost double the 10.4% gain seen in 2020.

We’re seeing price gains across all regions of the U.S., with the highest being in the South and the Southeast, both rising by more than 25% on average. Dramatic growth in the nation’s big cities continues, with all 20 cities listed in the index demonstrating record-breaking prices. The city topping the charts for annual gains is Phoenix, Arizona with an average increase of 32.5%. The two runners-up are Tampa and Miami, with a 29.4% and 27.3% gain, respectively.

Looking month-to-month, annual home price gains peaked in August of 2021 at 19.8% and the rate of increase declined through November to 18.8%. Gains remained steady from November to December, and while prices will continue to rise, gains are expected to decelerate as we continue into 2022. So, what’s causing these groundbreaking price increases?

Craig J. Lazzara, managing director at S&P Dow Jones Indices, says that these market changes are partly driven by demand and the number of Americans moving during the pandemic. The available housing inventory dropped to an all time low in December. Coupled with a steady strong demand for housing, prices will rise. The pandemic’s interference with new home construction has made it difficult to reduce the shortage, and it could be many years before demand is met.

One factor that may contribute to diminishing the housing demand is mortgage rates. Rising mortgage rates have lagged behind the home price increases seen across the country, but are now beginning to show more abrupt increases as well, rising almost to 4% for a 30-year-fixed-rate mortgage as of late December.

The majority of mortgage increases seen have occurred in the last 2 months, but have added a significant amount to the monthly cost of a home sale. This is expected to challenge the affordability of the housing market for many buyers, in addition to the trend of under-building we’ve seen over the last decade. Reports estimate that the current housing market is at least 5.8 million homes below household growth.

However, competitive labor market conditions and changes brought by the pandemic such as workplace flexibility may continue to give Americans the resources and opportunity to navigate an ever-competitive housing market. Overall, economists and housing experts expect this housing trend to slow in 2022, as the data has predicted for the last six months.

Get San Diego California Property Management

For San Diego California Property Management Contact Utopia Management today by calling us at (800) 294-4656 or click here to connect with us online.

Elly Johnson stands at the forefront of content research and online branding at Utopia Management. As the Content Marketing Manager, she delves deep into understanding local real estate and rental markets, fueled by her passion for travel and keen research skills. Elly is dedicated to empowering individuals with the knowledge they need to make informed decisions about where to reside. A proud alumna of the University of South Florida, located in the vibrant heart of Tampa Bay, she holds a Bachelor of Arts in Psychology. Her academic background and extensive travel experiences uniquely position her to provide insights that resonate with diverse audiences.

Leave a Reply

Your email address will not be published.

Let’s Talk


Fill out the form to request a free consultation

None of the authors, contributors, administrators or anyone else connected with Utopia Management, in any way possible, can be held responsible for your use of the information contained in or linked from these web pages.

Compare Listings