Home prices in January rose by 11.2 percent year over year, according to the monthly S&P CoreLogic Case-Shiller U.S. National Home Price Index.

The skyrocketing home price growth seen for much of 2020 is carrying forward into 2021.

Home prices in January rose by 11.2 percent year over year, according to the monthly S&P CoreLogic Case-Shiller U.S. National Home Price Index released on Tuesday. The numbers took a leap from the previous month, which saw 10.4 percent growth.

Despite the pandemic, converging nationwide low inventory and low mortgage rates have fueled an ultra-competitive market in which buyers vie for a limited number of homes by making higher offers. By the end of January, there were only 1.03 million homes on the market across the country — such low numbers were not observed since 1982 while homes prices are at a 15-year high.

Case-Shiller/CoreLogic

“The housing market momentum that had picked up pace at the end of 2020 spilled over into the early months of 2021, upending the traditionally slow home-buying season,” Selma Hepp, CoreLogic’s deputy chief economist, said in a press statement. “Further declines in mortgage rates — which hit all-time lows at the end of December — helped carry the strong momentum, but also amplified demand from millennials and those seeking second homes. Additionally, housing inventories are not showing any signs of improvement. In fact, data shows they are reaching historical troughs, which is putting additional pressure on home prices.”

Phoenix, Seattle and San Diego saw the greatest increases in home prices at 15.8 percent, 14.3 percent and 14.2 percent, respectively. No major city in the U.S. saw its home prices drop in January.

The S&P CoreLogic Case-Shiller U.S. National Home Price Index is “a composite of single-family home price indices that is calculated every month; the indices for the nine U.S. Census divisions are calculated using estimates of the aggregate value of single-family housing stock for the time period in question.”

“Home prices continued their surge higher as the new year began, maintaining a torrid pace that appears likely to persist for many more months,” Zillow Economist Zillow Matthew Speakman said in a statement. “As more signs of an improving economy continue to arrive, demand for housing remains elevated leading homes to fly off the shelves and red-hot competition for the relatively few homes available for sale.”

Email Veronika Bondarenko

CoreLogic
Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×