S&P Corelogic Case-Shiller National Home Price Indices Strongest in 32 Months

The S&P CoreLogic Case-Shiller Indices covering all 20 metro-areas rose 5.8% in the 12 months ended in February, the strongest rate of growth in 32 months. That’s up from the 5.6% year-over-year increase reported in January.

The 10-city index gained 5.2% over the year, compared with 5% the prior month, and the 20-city index rose 5.9% year-over-year, compared with a 5.7% increase in January. It’s slightly below the median forecast on Econoday, which anticipated 0.8%.

“Housing affordability has declined since 2012 as the pressure of higher prices has been a larger factor than stable to lower mortgage rates,” said David Blitzer, managing director at S&P Dow Jones Indices. “Is it going to be a horrendous collapse? No I don’t think it will be. Will there be people in the next five years who are forced to sell their house for less than they paid? Yeah, there will be some people.”

Seattle topped the list in February with a 12.2% annual home-price increase, while Portland came in at a 9.7% year-over-year gain. Dallas replaced Denver in the top three, with a 8.8% annual increase in home prices.