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Home Prices See Modest Rise in December

S&P Dow Jones Indices (S&P DJI) has released the latest results for the S&P CoreLogic Case-Shiller Indices for December 2021, showing that home prices continue to increase across the nation. Before seasonal adjustment, the U.S. National Index posted a 0.9% month-over-month increase in December, while the 10-City and 20-City Composites both posted increases of 1.0% and 1.1%, respectively. 

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 18.8% annual gain in December finishing out the 2021 calendar year, remaining the same as the previous month. The 10-City Composite annual increase came in at 17.0% up from 16.9% in the previous month. The 20-City Composite posted a 18.6% year-over-year gain, down from 20.0% in the previous month. 

"This month's report covers December 2021, and therefore brings our reporting on calendar 2021 to a close," says Craig J. Lazzara, Managing Director at S&P DJI. "For the year, the National Composite Index recorded a gain of 18.8%. This is the highest calendar year increase in 34 years of data, and substantially ahead of 2020's 10.4% gain. The 10- and 20-City Composites rose 17.0% and 18.6%, respectively—a record for the 20-City Composite, and the second-best year ever for the 10-City Composite.” 

"We have noted that for the past several months, home prices have been rising at a very high, but decelerating rate. The deceleration paused in December, as year-over-year changes in all three composite indices were slightly ahead of their November levels. December's 18.8% gain for the National Composite is the fifth-highest reading in history. 

"We continue to see very strong growth at the city level. All 20 cities saw price increases in 2021, and prices in all 20 are at their all-time highs. December's price increase ranked in the top quintile of historical experience for 19 cities, and in the top decile for 16 of them. 

"Phoenix's 32.5% increase led all cities for the 31st consecutive month. Tampa (29.4% increase) and Miami (27.3%) continued in second and third place in December. Prices were strongest in the South (25.7%) and Southeast (e25.6%), but every region continued to log impressive gains. 

"We have previously suggested that the strength in the U.S. housing market is being driven in part by a change in locational preferences as households react to the COVID pandemic. More data will be required to understand whether this demand surge simply represents an acceleration of purchases that would have occurred over the next several years rather than a more permanent secular change. In the short term, meanwhile, we should soon begin to see the impact of increasing mortgage rates on home prices." 

About Author: Kyle G. Horst

Kyle Horst
Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected]

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