Home prices in October rose at their fastest pace in more than six years nationally as the surge of buyers out of city centers resulted in the fewest properties listed for sale on record. Home prices rose 8.4% year over year in October, according to the national Case-Shiller index, the highest since March 2014. Prices are now 25% above the peak that was reached ahead of the 2008 financial crisis.
“The data from the last several months are consistent with the view that COVID-19 has encouraged potential buyers to move from urban apartments to suburban homes,” Craig Lazzara, managing director at S&P Dow Jones Indices, said in a statement.
The 20-city composite index found prices advanced 7.9% from a year ago in October, up from the previous month’s 6.6% gain. Phoenix reported the strongest annual gain with prices up 12.7%, followed by Seattle and San Diego, which saw price increases of 11.7% and 11.6%, respectively. New York reported the smallest gain, up 6% from a year ago. Chicago was next with a 6.3% increase.