United States: House price growth records best result on record in March
The S&P/Case-Shiller 20-city composite home price index rose 3.1% in month-on-month terms in March, which followed February’s 2.4% increase. March’s print marked the best result on record.
On an annual basis, house prices grew 21.2% in March, which was above February’s 20.3% expansion and also marked the best result on record. The annual figure was once again led by price growth in Phoenix, Tampa and Miami—which are benefitting from the increase in remote working brought on by the pandemic—although all 20 cities saw double-digit price growth in March.
Looking forward, our panelists see house price growth eventually cooling amid rising interest rates, elevated inflation and an improved supply of new homes, with the 2023 price growth forecast much lower than that for 2022. However, rock-bottom unemployment will keep buttressing home demand, while the rise of remote working, more favorable weather and relative affordability will likely continue to support house prices in the south of the country.