Home prices for 20 U.S. cities rose to all-time highs in August, with Phoenix reporting the biggest increase, the Associated Press reported.
The COVID-19 pandemic and other factors have motivated many Americans to seek out new homes, leading to higher demand and increased prices in a market without sufficient stock.
The S&P CoreLogic Case-Shiller 20-city home price index grew by 19.7 percent in August compared to the previous year, second only to the 20 percent jump recorded in July that marked the largest on-record increase since 2000, AP reported.
All of the cities on the index are seeing their highest home prices ever, but as it has for more than two years, Phoenix led the pack in terms of increases.
Home prices in Arizona's capital increased by 33.3 percent in August compared to a year earlier. San Diego and Tampa came second and third behind Phoenix, with the former documenting a 26.2 percent jump in house prices and the latter recording a 25.9 percent increase, according to AP.
For more reporting from the Associated Press, see below.
Mortgage rates have also been historically low, though they have risen in recent weeks, and many Americans have become wealthier since the pandemic as stock prices have moved steadily higher, enabling them to afford a new home.
There are signs that the rapid price gains of the past year are cooling a bit. August's price increases, compared with a year ago, were slightly lower than in July, the first decline in annual price gains since June of 2020. And price increases slowed in 12 of the 20 cities in the Case-Shiller CoreLogic index.
"The slowing acceleration in home prices suggests that buyer fatigue is setting in, particularly among higher-priced homes," CoreLogic Deputy Chief Economist Selma Hepp said.
Mortgage rates rose to 3.1 percent last week, the highest since April, according to mortgage-buyer Freddie Mac.
That increase likely pushed more people to look for and buy homes, before rates move even higher. Sales of existing homes jumped 7 percent in September.
Potential buyers still have relatively few homes to choose from, with just 1.27 million houses on the market in September, down 13 percent in the past year. That's pushed many buyers to move quickly.
Homes are typically selling within 17 days of hitting the market, according to the National Association of Realtors, and 86 percent of homes sold in September were on the market for fewer than 30 days.
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