U.S. Home-Price Growth Accelerated in March
May 26 2020 - 10:03AM
Dow Jones News
By Nicole Friedman
Home-price growth accelerated in March, even as home sales
dropped after the coronavirus pandemic shut down economic activity
in some regions.
The S&P CoreLogic Case-Shiller National Home Price Index,
which measures average home prices in major metropolitan areas
across the nation, rose 4.4% in the year that ended in March, up
from a 4.2% annual rate the prior month. March marked the highest
annual growth rate since December 2018.
Homes of previously owned homes, which make up the bulk of the
housing market, fell 8.5% in March from the prior month as the
pandemic kept buyers and sellers on the sidelines, according to the
National Association of Realtors.
But a decline in home sales hasn't corresponded with lower home
prices so far this spring. Many sellers took their homes off the
market once the pandemic struck or opted to wait to sell, reducing
the number of available houses for sale. The stimulus bill passed
in March also enabled many homeowners to suspend mortgage payments
if needed, reducing the risk of foreclosures or distressed
sales.
The data, which was released Tuesday, is based on transactions
closed during March, which typically reflect purchase decisions
made in February or January.
"Housing prices continue to be remarkably stable," said Craig
Lazzara, managing director and global head of index investment
strategy at S&P Dow Jones Indices, in a statement. "As much of
the U.S. economy remained shuttered in April, next month's data may
show a more noticeable impact" from the pandemic.
U.S. existing-home sales dropped 17.8% in April, the biggest
monthly decline since July 2010, according to NAR.
The Case-Shiller 10-city index gained 3.4% over the year ended
in March, up from a 3% annual change in February. The 20-city index
rose 3.9%, after an annual gain of 3.5% in February.
The 20-city index only measured 19 cities this month due to
transaction reporting delays in Wayne County, Mich., according to
S&P Dow Jones Indices. Price growth accelerated in 17 of the 19
cities.
Phoenix had the fastest home-price growth in the country, at
8.2%, followed by Seattle at 6.9%.
A separate measure of home-price growth by the Federal Housing
Finance Agency released Tuesday found a 5.9% increase in home
prices in March from a year earlier.
Write to Nicole Friedman at nicole.friedman@wsj.com
(END) Dow Jones Newswires
May 26, 2020 09:48 ET (13:48 GMT)
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