Despite the surge in mortgage interest rates and high home prices, buyers have remained resilient and continued to seek homes, keeping the market competitive.
The first quarter of 2022 was marked by some of the most competitive housing market conditions since the onset of the pandemic.
Home price growth continued to gain speed in early spring, as eager buyers tried to get in front of the mortgage rate surge. The S&P CoreLogic Case-Shiller Index posted a 19.8% increase in February, the second month of accelerated growth after a winter lull. This was the strongest February year-over-year increase since the beginning of the data series.
After a short respite, home price growth sped up in January. The S&P CoreLogic Case-Shiller Index registered a 19.2% increase after four months of slowing or flat growth. This was the strongest January year-over-year increase since the beginning of the data series.
After some signs of slowing home price growth, suggested by the seasonally adjusted deceleration in month-to-month gains, November monthly price growth re-accelerated again, indicating home buyers have not yet thrown in the towel.
Despite some headwinds to the housing demand stemming from higher mortgage rates, affordability constraints and continued lack of supply, home price growth and home sales activity continued to track at record levels.