US Home Prices Surged More Than 18 Percent in October

US Home Prices Surged , More Than 18 Percent in October.

The S&P CoreLogic Case-Shiller 20-city home price index was released on Dec.

28.

It revealed an average increase of 18.4 percent in home prices for October this year.

Phoenix, AZ, had the steepest increase in home prices, with an uptick of 32.3 percent.

Tampa and Miami followed Phoenix with 28.1 and 25.7 percent increases, respectively.

.

Minneapolis and Chicago experienced the smallest increase with an uptick of 11.5 percent for each city.

Economists had been expecting an increase in line with what the S&P data revealed.

While analysts believe the increase likely is reflective of hopes for a receding COVID-19 pandemic.

They also stated that the reasons behind the significant increase are complex.

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.

, Craig Lazzara, S&P Dow Jones Indices, via CNBC.

It is also unclear if these increases are long-term or reflective of a boom in the housing market.

More data will be required to understand whether this demand surge represents an acceleration of purchases that would have occurred over the next several years.., Craig Lazzara, S&P Dow Jones Indices, via CNBC.

... or reflects a more permanent secular change, Craig Lazzara, S&P Dow Jones Indices, via CNBC.

Mortgage rates continue to slide downward, .

Perhaps as a reflection of increased uncertainty over Omicron and other COVID-19 variants