According to the S&P CoreLogic Case-Shiller National Home Price Index, Home prices in March were 13.2% higher than March 2020.
The March Home price is the biggest since December 2013 and is the largest in the index’s 30-year history. That growth followed a flow of 12% in February.
Due COVID-19 pandemic many homeowners are opening up their homes for buyers.
According to the National Association of Realtors, the number of home sales fell from 21% in April compared with a year before, to just 1.16 million.
The 10 cities compound rose 12.8% year over year, up from 11.7% in the previous month. The 20 cities compound increased 13.3%, up from 12% in February.
Phoenix, San Diego, and Seattle are the largest gain cities. Phoenix city at the top with the 20% increase compared to last year. San Diego with a 19.1% increase whereas Seattle prices rising at 18.3%.
“These data are consistent with the hypothesis that Covid has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, managing director and global head of index investment strategy at S&P DJI.
“This demand may represent buyers who accelerated purchases that would have happened anyway over the next several years. Alternatively, there may have been a secular change in preferences, leading to a permanent shift in the demand curve for housing,” he added further.