US house prices near record highs as growth picks up

30th Apr 2024 14:02

(Sharecast News) - Urban house-price growth in the US accelerated to its highest level in 16 months in February, according to data out on Tuesday from S&P CoreLogic Case-Shiller, with prices at or near all-time highs.

The 20-City Composite index, which measures residential real estate prices in 20 major metropolitan areas across the country, rose at a year-on-year rate of 7.3% up from 6.6% in January.

This was well above the consensus forecast for an increase of 6.7%.

San Diego saw the highest annual growth among the 20 cities in the survey at 11.4%, followed by Chicago and Detroit, with increases of 8.9%.

The lesser-followed National Composite index rose by by 6.4% on last year in February, up from 6.0% in January, while the 10-City Composite index saw growth accelerate to 8.0% from 7.4%.

"Following last year's decline, US home prices are at or near all-time highs," says Brian D. Luke, head of commodities, real and digital assets at S&P Dow Jones Indices. "For the third consecutive month, all cities reported increases in annual prices, with four currently at all-time highs: San Diego, Los Angeles, Washington, D.C., and New York."

Luke added: "Since the previous peak in prices in 2022, this marks the second time home prices have pushed higher in the face of economic uncertainty. The first decline followed the start of the Federal Reserve's hiking cycle. The second decline followed the peak in average mortgage rates last October. Enthusiasm for potential Fed cuts and lower mortgage rates appears to have supported buyer behavior, driving the 10- and 20- City Composites to new highs."