February saw the highest annual house price increase ever recorded



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While Hartford saw double-digit year-over-year home price growth, growth is lagging behind many other cities.

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In February 2022, home prices grew 19.6% a year, according to the Black Knight Mortgage Monitor Report — the highest rate ever recorded since the company began looking at this data in 2000. is up 20% year over year in February 2022, according to the latest CoreLogic Home Price Index Report. The house price index’s rise in February 2022 outpaced the 10% rise in February 2021 and was the highest 12-month growth in the U.S. index since the series began in 1976. In addition, each of the 100 markets measured by Black Knight in February annual double-digit growth. “That’s the first time that’s ever happened,” Black Knight wrote. And of those markets are still seeing house prices rise — even if interest rates continue to rise, with pros saying it will continue into 2022. (You can see the lowest mortgage rate you can qualify for here.)

But growth is not universal, and in some major cities, growth is even much slower than average. Minneapolis, Chicago, Baltimore, and Milwaukee are among the cities with the lowest home growth rates, with annual home price growth of 11% or less. Meanwhile, home prices in these five cities rose by 31.5% or higher: Tampa, Austin, Raleigh, Phoenix and Nashville.

10 markets with the slowest house price growth

Annual house price growth, by market (only top 100 markets measured)

Minneapolis

+10.1%

Washington DC

+10.2%

Chicago

+10.7%

Baltimore

+10.9%

+11.1%

Pittsburgh

+11.4%

Boston

+11.4%

New Orleans

+11.9%

New York-Newark

+12.2%

Hartford

+12.9%

10 markets with the fastest house price growth

Annual house price growth, by market (only top 100 markets measured)

Tampa

+10.1%

Washington DC

+33.0%

Raleigh

+32.8%

phoenix

+32.0%

Nashville

+31.5%

Jacksonville

+29.5%

Orlando

+28.6%

Las Vegas

+28.6%

Miami

+27.9%

San Diego

+27.3%

Source: Black Knight

What places this fast-growing vs. slower growing places in such great contrast to each other? The local job market is a big factor, said Lawrence Yun, chief economist at the National Association of Realtors. “Austin has been creating jobs at a rapid pace over the past ten years and will continue to do so. In contrast, job growth in Chicago has been slower,” Yun said. Bankrate analyst Jeff Ostrowski adds, “Austin’s home price increase is the result of an increase in high-paying tech jobs, and California-based tech companies have opened offices there as an alternative to the dazzling prices in Silicon Valley.” (You can see the lowest mortgage rate you can qualify for here.)

Some markets had previously experienced strong growth. “New York, Boston and Washington have experienced major increases in home values ​​in the decades leading up to the pandemic, so it’s possible that some people will move to cheaper housing elsewhere. But the rise in house prices is creating momentum of its own. Prices in California continued to rise long after the state became unaffordable, and prices in places like Milwaukee, Cleveland and Detroit have been low for decades,” Ostrowski said. Real estate attorney Michael Romer points out that many of the cities that have been growing house prices at a relatively slower pace were already very expensive before the pandemic. “Any price growth from a high level is likely to be much smaller, percentage-wise, than growth from a lower baseline,” Rober said.

And another factor is the increased ability of some people to live further from their jobs. “As remote work becomes a staple of our society, workers have realized that they do not need to live close to work, which has resulted in a higher cost of living and many have decided to move to more rural areas with lower costs. of livelihood,” says real estate lawyer Pierre Debbas.

Whatever the reasons, one thing is clear: it is difficult to afford a house these days. “Affordability has now been the worst on record outside of 2004-2007,” Black Knight writes.

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