US house prices jumped in October for more than six years as the pandemic-induced buying frenzy caused the number of properties for sale to drop to a record low.
This combination of strong demand and limited supply led to house prices rising by 7.9% in October, according to the S&P CoreLogic Case-Shiller 20-city house price index. This is the biggest annual increase since June 2014.
The coronavirus outbreak has forced millions of Americans to work from home and limited other activities such as eating out, going to the movies or going to the gym. This is leading more people to look for homes with more space for a home office, a bigger kitchen or a place to work out. “The data over the past few months is also consistent with COVID-19 encouraging potential buyers to move from urban flats to suburban homes,” said Craig Lazzara, managing director of S&P Dow Jones Indices.
Phoenix saw the biggest rise in prices, with home prices up 12.7 per cent in 17 months. It was followed by Seattle with 11.7% and San Diego with 11.6%.