U.S. Home Prices Post 19.8% Year-Over-Year Gain in February 2022

According to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported today (4-26-22), which covers all nine U.S. Census divisions, home prices experienced a 19.8% annual gain in February, following a 19.1% annual gain in January.

The 10-City Composite annual increase came in at 18.6% in February, up from 17.3% in the previous month. The 20-City Composite posted a 20.2% year-over-year gain, up from 18.9% in the previous month.

The highest year-over-year gains among the 20 cities in February was led by Phoenix with a 32.9% year-over-year price increase, followed by Tampa with a 32.6% increase, and Miami with a 29.7% increase. All 20 cities reported higher price increases in the year ending in February 2022, versus the year ending in January 2022.

The U.S. National Index, before seasonal adjustment, posted a 1.7% month-over-month increase in February, while the 10-City Composite and 20-City Composites both posted increases of 2.4%.

After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.9%, with the 10-City posting a 2.3% increase and the 20-City Composite posting an increase of 2.4%. All 20 cities reported increases before and after seasonal adjustments.

Craig J. Lazzara, Managing Director at S&P DJI, provided the following analysis for the February Home Price Index report:

“U.S. home prices continued to advance at a very rapid pace in February. The National Composite Index recorded a gain of 19.8% for the 12 months ended February 2022; the 10- and 20-City Composites rose 18.6% and 20.2%, respectively. All three composites reflect an acceleration of price growth relative to January’s level. The National Composite’s 19.8% year-over-year change for February was the third-highest reading in 35 years of history. That level of price growth suggests broad strength in the housing market, which is exactly what we continue to observe.

The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer. The post-COVID resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response. We may soon begin to see the impact of increasing mortgage rates on home prices.”