US home prices rose at the fastest pace on record in the fourth quarter of 2020. According to NAR’s latest quarterly report, the national median existing single-family home price rose 14.9% percent on a year-over-year basis. That was the biggest surge in data going back to 1990.
The report highlighted that “every metro area tracked by the National Association of Realtors through the fourth quarter of 2020 witnessed home prices grow from a year ago“. It added that “eighty-eight percent of the metros followed (161 areas) saw double-digit price increases. For comparison, only 115 metro areas saw such growth in the third quarter.”
Citing the report, Bloomberg underlined “the Northeast led the way as buyers rushed to the suburbs. Fairfield County, Connecticut, home to Greenwich and other tony towns, rose 39% for the biggest increase in the U.S.”
NAR quartelery figures are coherent with other reports of US home prices. In November 2020, the FHFA (Federal Housing Finance Agency) purchase-only price index rose 11.0 percent YoY in November (the largest increase on record and up from +10.3 percent in October).
The trend is unlikely to change in the short term as the US economy showed signs of resilience (positive for demand) and supply remains limited (record low inventory). In addition, the pandemic property boom has also been driven by flexible policies that allow Americans to work (and live) where they want.
— Bloomberg TV (@BloombergTV) February 9, 2021