U.S. home prices surged again in October as the housing market continues to boom in the wake of last year’s coronavirus recession.
All 20 cities posted double-digit annual gains. The hottest markets were Phoenix . Minneapolis and Chicago posted the smallest increases, 11.5 per cent each. “Home price growth will slow further in the year ahead, but continue to go up, said Danielle Hale, chief economist at. “As housing costs eat up a larger share of home purchaser’s paychecks, buyers will get creative. Many will take advantage of ongoing workplace flexibility to move to the suburbs where despite home price gains, many can still find a lower price per square foot than nearby cities.
“We have previously suggested that the strength in the U.S. housing market is being driven in part by a change in locational preferences as households react to the COVID pandemic,” Lazzara said. “More data will be required to understand whether this demand surge represents an acceleration of purchases that would have occurred over the next several years, or reflects a more permanent secular change.