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The latest release of the Case-Shiller home-price index confirmed what other recent data and anecdotes have suggested: Home prices, undeterred by the pandemic and recession, have risen to new highs remarkably quickly.
Home prices rose 8.4% year over year in October, according to the S&P CoreLogic Case-Shiller Home Price Index, notching the fastest annual growth since the housing market began to recover in 2014 from the crash that sparked the financial crisis. The home-price index is now nearly 25% higher than its previous peak in 2006.
Home-price appreciation is ordinarily considered a positive, boosting household wealth and contributing to the greater economy, but today it comes as the Covid-19 pandemic has put millions out of work. While home sales in recent months have soared above last year’s levels, housing market economists have been sounding the alarm about the potential impact of rising prices and a historically tight inventory of homes for sale.