Home sales jumped nearly 21% in June

A house for sale sign is seen in Arlington, Virginia on May 6, 2020.

Home prices, driven by low mortgage rates and Americans moving to the suburbs, surged across the United States in December 2020.

The S&P CoreLogic Case-Shiller 20-city home price index, released Tuesday, climbed 10.1% in December from a year earlier. The year-end jump was the biggest since April 2014 and follows a strong 9.2% year-over-year gain in November.

In December in Atlanta, home sales grew roughly one percent month-over-month from November, but year-over-year saw growth in Atlanta jump 8.9 percent. Home prices climbed 14.4% in Phoenix, 13.6% in Seattle and 13% in San Diego. But prices rose all over. Chicago, which recorded the slowest price gain, saw a 7.7% uptick.

The housing market has fought off the coronavirus pandemic with the aid of rock-bottom mortgage rates on home loans. The average rate on the benchmark 30-year, fixed-rate mortgage ticked up to 2.81% last week from 2.73% but remains well below where it was a year earlier: 3.49%.

But the Commerce Department reported last Thursday that U.S. home construction fell 6% in January, dragged down by a 12.2% drop in construction of single-family homes; apartment construction climbed 16.2%. Still, applications for building permits, which typically signal where home building is headed, rose sharply in January.

Copyright 2021 WGCL-TV (Meredith Corporation). All rights reserved.

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