Metro Phoenix had the strongest growth with prices up 17.4%, Lazzara said. “But housing’s strength is reflected across all 20 cities.”
San Diego prices were up 17% and Seattle’s up 15.4%. The slowest growth was Chicago’s 8.6%.
For a variety of reasons, potential sellers have been hesitant to list their homes for sale. In contrast, wannabe buyers have poured into the market, often bidding against each other and pushing up prices.
To land a house, prospective buyers often offer to pay thousands of dollars more than the seller is asking, said realtor Alix Nadi of Re/Max Around Atlanta.
“There’s so little inventory in the market,” she said. “Especially in the suburbs, we are getting 10 to 20 offers the first few days a house is listed.”
The pressure on prices is most intense among lower-priced homes that appeal to first-time buyers, said John Ryan, chief marketing officer, Georgia Multiple Listing Service.
The imbalance between supply and demand started building years before the arrival of COVID-19 and won’t disappear when the pandemic ebbs, he predicted. “I can’t see anytime soon when this is going to change. That is going to take a good long period of time.”
Increase in prices of homes resold, past year
San Diego: 17.0%
Los Angeles: 11.9%
New York: 11.6%
San Francisco: 11.0%
Las Vegas: 9.1%
Metro Atlanta home price trajectory
In year after start of pandemic: +10%
Since bottom of market, 2012: +101.3%
Compared to previous peak, 2007: +26.9%
Source: S&P CoreLogic Case-Shiller Index