Home-price growth accelerated to a 15-year high in January, as the supply of homes for sale dropped to a new low.
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 11.2% in the year that ended in January, up from a 10.4% annual rate the prior month. January marked the highest annual rate of price growth since February 2006.
House-buying demand remains robust due to record-low interest rates and a desire for more space. Sales of previously owned homes, which make up the bulk of the housing market, rose in 2020 to their highest annual level since 2006, according to the National Association of Realtors.
The supply of homes for sale has dropped, prompting buyers to compete for houses and buoying prices. There were 1.03 million homes for sale at the end of January, the lowest level in data going back to 1982, according to NAR.
The Case-Shiller 10-city index gained 10.9% over the year ended in January, compared with a 9.9% increase in December. The 20-city index rose 11.1%, after an annual gain of 10.2% in December. Price growth accelerated in all of the 20 cities.
