The S&P Case-Shiller US home-price index rose to a 10.4% annualized increase in December, up from 9.5%.The data suggests the US housing market ended 2020 strong amid low inventory and record-low mortgage rates.US home prices surged through the end of 2020 as record-low mortgage rates kept demand at elevated levels, andThe S&P CoreLogic Case-Shiller US National Home Price Index posted a 10.4% annualized increase in December, according to a Tuesday. The gain follows a 9.
Phoenix, Seattle, and San Diego saw the biggest home-price increases among the 19 cities surveyed in December. The housing market was one of the few pockets of the economy to see explosive growth through 2020 as new buyers rushed to scoop up dwindling inventory. The Federal Reserve's decision to drop interest rates to nearly zero in March 2020 dragged on mortgage rates and, along with, sparked a homebuying spree. The surging pace of sales for new and existing homes quickly left contractors struggling to keep up.
for the first ever in mid-2020 and stayed there for months, it turned higher in mid-January, signaling the buying frenzy could soon cool.indicating investors are growing wary of inflation leaping higher as the economy recovers. Rising inflation would likely correspond with rising mortgage rates and, in turn, slow home-price growth.
It's because it's cheaper to buy than to rent right now. Rental prices are out of control. Especially with wealthy LLCs buying up houses, townhomes and condos.