U.S. Home Prices Post 20.6% Year-Over-Year Gain in March 2022

On Tuesday (5-31-22), S&P CoreLogic Case-Shiller released its U.S. National Home Price NSA Index for March. The Index, which covers all nine U.S. Census divisions, reported that home prices experienced a 20.6% annual gain in March. The increase follows a 20.9% annual gain in February and a 19.1% annual gain in January.

The 10-City Composite annual increase came in at 19.5% in March, up from 18.7% in February and 17.3% in January. The 20-City Composite posted a 21.2% year-over-year increase in March, up from 20.3% in February and up from 18.9% in January.

The highest year-over-year gain among the top 20-cities in March was led by Tampa at 34.8%, followed by Phoenix with a 32.4% increase and Miami with a 32.0% increase. Seventeen of the 20 cities reported higher price increases in the year ending March 2022 versus the year ending February 2022.

Before seasonal adjustment, the U.S. National Index posted a 2.6% month-over-month increase in March, with the 10-City composite posting a 2.8% increase and the 20-City composite posting an increase of 3.1%.

After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 2.1%, and the 10-City and 20-City Composites posted increases of 2.2% and 2.4%, respectively. In March, 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 March Home Price Index report:

“Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer. The National Composite Index recorded a gain of 20.6% for the 12 months ended March 2022; the 10- and 20-City Composites rose 19.5% and 21.2%, respectively. For both National and 20-City Composites, March’s reading was the highest year-over-year price change in more than 35 years of data, with the 10-City growth rate at the 99th percentile of its own history.

The strength of the Composite indices suggests very broad strength in the housing market, which we continue to observe. All 20 cities saw double-digit price increases for the 12 months ended in March, and price growth in 17 cities accelerated relative to February’s report. March’s price increase ranked in the top quintile of historical experience for every city, and in the top decile for 19 of them.”