Washington (Associated Press)-The number of homes available for sale hit a record low due to the buying boom triggered by the pandemic, and US home prices rose in October to their highest level in more than six years.
According to Tuesday’s Standard & Poor’s CoreLogic Case-Shiller 20 city house price index, strong demand and limited supply together pushed house prices up 7.9% in October compared with 12 months ago. This is the largest annual increase since June 2014.
The coronavirus outbreak has forced millions of Americans to work from home, and it has reduced other activities such as eating out, watching movies or visiting stadiums. This leads more people to look for houses with more home offices, larger kitchens or exercise space.
Craig Lazzara, executive director of S&P Dow Jones Indices, said: “The data of the past few months are consistent with the view that COVID has encouraged potential buyers to switch from urban apartments to suburban housing.”
Lazara said prices in all 1
The largest price increase was in Phoenix for the 17th consecutive month, with house prices rising by 12.7% from a year ago. Close behind are Seattle (11.7%) and San Diego (11.6%).
Home sales fell in NovemberAccording to data from the National Association of Realtors, after steady growth in the past five months. Even after the decline, last month’s sales increased by nearly 26% compared to a year ago. Low mortgage rates have also boosted sales, which reflects the Fed’s move to keep its benchmark short-term interest rate close to zero.
Real estate agents said that the number of homes for sale in November fell to 1.28 million, which is only 2.3 months at the current sales rate. Both of these figures hit record lows.