The S&P Case-Shiller Home Price Indices are among the most closely followed measures of US home values. According to their most recent release, their National Home Price Index showed a 7 percent year-over-year gain in September. It was the biggest increase in six years and a significant spike from the previous month when prices were only up 5.8 percent from one year earlier.
Craig Lazzara, managing director and global head of index investment strategy at S&P, says it’s too soon to determine whether the increases are due to the market catching up from COVID-related declines earlier in the year or sign of upcoming strength. “A trend of accelerating increases in the National Composite Index began in August 2019 but was interrupted in May and June, as COVID-related restrictions produced modestly-decelerating price gains,” Lazzara said.
“This month’s increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes.” (source)