The S&P Case-Shiller Home Price Indices have been considered among the leading measures of US home prices for decades. According to their most recent release, prices are still rising, continuing a streak that dates back to last summer. In fact, the data – which covers home values through the end of November – shows increases have actually accelerated. Craig Lazzara, managing director and global head of index investment strategy at S&P, says the most recent increase was the biggest since February 2014.
“As COVID-related restrictions began to grip the economy last spring, their effect on housing prices was unclear,” Lazzara said. “Price growth decelerated in May and June before beginning a steady climb upward. November’s report continues that acceleration in a particularly impressive manner. The National Composite last matched this month’s 9.5 percent growth rate in February 2014, more than six and a half years ago.”
A lower than the normal number of homes for sale is the main factor pushing prices higher. As spring approaches and more homes are listed for sale, prices should begin to moderate from their current pace. (source)