Home Prices Jumped Nearly 20% in the Fall

by Amanda Glover

Home prices continue to increase from 20% in October. They’ve increased by double digits since October. So, be on the lookout when hunting for your dream house.

Once home costs went up by 19.1% in October from last year, it marked the second month in a row of slower growth. In 34-years, October’s home prices gain became the fourth-highest level.

With 20 cities tracked by Case Shiller since October, Phoenix, Miami, and Tampa saw the highest year-over-year gains. In 2020, the prices of homes in Phoenix were up by 32.3%. Tampa’s homes went up by28.1%. Miami has a 25.7% price increase.

 Craig J. Lazzara, managing director at S&P Dow Jones Indices made a statement about the home buying industry. “In October 2021, US home prices moved substantially higher, but at a decelerating rate. There is still tremendous price growth at the city level. 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.”

Although price increases have been highest in the South and Southeast, each region continues to see double-digit increases.

Professionals Believe US Home Prices Will Continue to Increase

With prices of everything in the U.S. continuing to increase, experts think US house affordability will worsen over the next few years.

Surprisingly, the housing market did well with the pandemic in full swing. More people began buying homes as COVID-19 took hold of everyone’s lives. But the demand for home purchases does not make them any more affordable.

According to a panel of Reuters property analysts, home affordability will be a big issue. Low-interest rates and demands for at-home office space led to uncontrollably rising prices this year.

A Wells Fargo Expert informed interviewers. “Overall housing demand remains strong, but there have been quite a few developments that have raised some red flags about the overall health of the housing market. We look for sales and new home construction to moderate in 2023, as the bulk of pent-up demand is likely to have been met by then. Price appreciation is also expected to moderate.”

Based on experts, the main issues are increased interest rates and supply restrictions. With the lack of new supply, many homebuyers have been pushed out of the market. Inventory levels have also one-third of where they need to be.

For these reasons, the demand for rental properties went up across the US. Rental rates are rising even higher than before the pandemic erupted. Besides looking for a place to call home, many need rental properties for returning to work and school. The industry for home purchases was at a low before COVID-19 and is continuing to struggle.