United States: Home price growth remains upbeat in March
The S&P/Case-Shiller 20-city composite home price index—excluding Detroit due to reporting delays—jumped 1.1% month-on-month in March, up from February’s 0.5% rise. When adjusted for seasonal factors, home prices increased 0.5% in March, accelerating slightly from February’s 0.4% increase and beating market expectations of 0.2%.
Home prices grew 3.9% in annual terms in March, which was stronger than February’s 3.5% increase and represented the quickest growth since December 2018. Gains continued to be the strongest in Phoenix for the tenth month running, followed by Seattle and Charlotte. Overall, 17 of the 19 cities, as Detroit data was unavailable in the index in March registered higher annual price growth in March relative to February.
Commenting on March’s result, Craig J. Lazzara, managing director and global head of index governance at S&P Dow Jones Indices, noted:
“Importantly, today’s report covers real estate transactions closed during the month of March. Housing prices have not yet registered any adverse effects from the governmental suppression of economic activity in response to the COVID-19 pandemic. As much of the U.S. economy remained shuttered in April, next month’s data may show a more noticeable impact.”