The S&P CoreLogic Case-Shiller Indices showed a continuation of 2020's blazing annual national home price gains in 2022 -- 19.2% over the 12 months up to January -- in a report on Tuesday. That same day, researchers and economists at the Federal Reserve Bank of Dallas outlined reasons to believe the U.S. housing market is coming "unhinged from fundamentals."
The 20-City Composite Index posted a 19.1% year-over-year gain, up from 18.6% in the previous month. Phoenix, Tampa, and Miami reported the highest year-over-year gains among the 20 cities in January. Phoenix led the way with a 32.6% year-over-year price increase, followed by Tampa with a 30.8% increase and Miami with a 28.1% increase. Sixteen of the 20 cities reported higher price increases in the year ending January 2022 versus the year ending December 2021.
“Home price changes in January 2022 continued the strength we had observed for much of the prior year,” says Craig J. Lazzara, Managing Director at S&P DJI. “Last fall we observed that home prices, although continuing to rise quite sharply, had begun to decelerate. Even that modest deceleration was on pause in January. The 19.2% year-over-year change for January was the fourth-largest reading in 35 years of history."
