Realtor.com warns that prospective homebuyers may not find a better deal in the future as home prices continue their climb. According to the S&P CoreLogic Case-Shiller price index, home prices in 20 large cities increased at a 6.6% yearly pace last month. In September, that yearly pace was 5.3% and economists only predicted a 5.4% for October home prices. Surveying the country as a whole, Case-Shiller saw a 7% increase in home prices year over year.
Home prices have actually risen faster during the worst pandemic in a century instead of getting cheaper. Rock-bottom mortgage rates and a flush of people leaving cities during the pandemic for more space in the suburbs and beyond has boosted demand at a time when the supply of home for sales is near a historic low.
On a monthly basis, the Case-Shiller 20-city index rose 1.2% in September.
What happened: Prices rose in 19 of the 20 large cities tracked by Case-Shiller. The lone exception, Detroit, likely registered higher prices as well, but Case-Shiller could not collect enough data because of rising COVID-19 cases in the area.