Low mortgage rates and a lack of homes for sale have continued to lift U.S. home prices, with metro Atlanta close to the head of the pack, according to a high-profile national report.
The nation's 20 largest metro areas averaged a 2.9% increase in home prices in the 12 months ended December, according to the Case-Shiller report from S&P CoreLogic Indices.
“This marks eight consecutive years of increasing housing prices,” said Craig Lazzara, managing director at S&P Dow Jones Indices.
Atlanta home prices last year rose 4.1%, ranking sixth among the nation's largest metro areas.
Metro Atlanta's average home prices bottomed out in 2012. Since then, they have climbed about 88%, according to Case-Shiller, which measures only resales of homes and does not include transactions involving new construction.
In comparison, the nation’s average prices have risen 59% since the market bottomed.
A month earlier, in November, Atlanta prices grew at a 4.2% annual pace, behind only Phoenix, Charlotte and Tampa. Since then, San Diego and Boston have pulled ahead, according to Case-Shiller.
Phoenix saw the largest gain in December: average prices were up 6.5% over the year.
Unless the broader economy stalls out, the prognosis is for continued growth in prices, a strength that low mortgage rates continue to fuel, said Bill Banfield, executive vice president of Quicken Loans. "We continue to see home price increases driven by low supply and strong demand."
Average price of homes, 2019*
Phoenix: 6.5%
Charlotte: 5.3%
Tampa: 5.2%
San Diego: 4.7%
Boston: 4.5%
Atlanta 4.1%
*Not including new construction
Source: S&P CoreLogic Case Shiller Indices
About the Author
