But even that huge gain is a slight slowdown from August, when prices rose 19.8%. According to the report, September marked the first time year-over-year growth fell since May.
“House prices continued to show significant strength in September, although the pace of price growth slowed slightly,” said Craig J. Lazzara, CEO of S&P Dow Jones Indices.
The cities with the biggest price increases were Phoenix, up 33.1% from a year ago, followed by Tampa with a 27.7% increase and Miami with a 25.2% increase.
Even the cities with the smallest annual price increases – Chicago, Minneapolis and Washington DC – saw prices rise more than 10% from a year ago.
Lazzara said the strength of the US housing market has been boosted by the pandemic, including by potential buyers moving from urban apartments to suburban homes.
“More data will be needed to understand whether this increase in demand is simply an increase in purchases occurring over the next few years or reflects a secular shift in local preferences,” he said.
A large number of buyers jostle for historically low numbers of homes for sale have pushed prices higher for months, while mortgage rates have remained low. Beaten by the most competitive months of early summer, some homebuyers may have been disappointed in September.
“Today’s S&P Case-Shiller Index shows the housing market in early fall with fewer families actively looking for homes after the start of the year,” said George Ratiu, director of economic research at Realtor.com. new and mostly direct learning”.
Another factor contributing to the slowdown in home price growth was the rise in mortgage rates in September, he said. Freddie Mac’s 30-year fixed loan went from 2.87% at the beginning of September to 3.01% at the end of the month, which is likely to limit buyers’ ability to appreciate.
While the index shows prices fell in September, home buying demand continued.
“As we near the end of a tumultuous 2021, the property market continues to grapple with inventories, homes selling quickly and prices continuing to rise,” said Ratiu.
However, he said, he hopes to have a more buyer-friendly market by 2022.
“The market has cooled down since the start of the year, as dozens of bid competitions, fallback waivers and price escalation terms made it difficult to shop from home, especially for buyers,” said Raitu. with first-time buyers”.
“More and more landlords are preparing to list in the next six months, indicating an unusually active winter,” he said. “For buyers, the landscape looks more promising as we head into 2022.”