Source: S&P Dow Jones Indices
US home prices continued to increase in December 2021, with the growth remaining at a record high. XHB is flat, while ITB is down 0.36% premarket.
- The national home price index recorded an 18.8% annual gain in December, unchanged from the previous month.
- The latest reading brought the national composite up 18.8% for the year, marking the highest calendar year jump on record in 34 years of data collection.
- The 10-City Composite annual growth accelerated to 17.0% from 16.9% in November, while the 20-City Composite up 18.6% from 18.3% in the previous month.
- The biggest increases for the month were in Phoenix up 32.5%, Tampa up 29.4%, and Miami up 27.3%.
- Home price increases have been decelerating in the past months, but this paused in December as all three composite indices recorded acceleration from the past month.
- S&P DJI Managing Director Craig Lazzara said the strength is partly driven by changes in locational preferences amid the COVID-19 pandemic.
- The impact of higher mortgage rates on home prices is expected to be felt in the short term.