The State Where Home Prices Are Surging

By Douglas A. McIntyre Published Dec 10, 10:30AM EST

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The State Where Home Prices Are Surging — © dszc / E+ via Getty Images

Home prices in America have skyrocketed this year. According to the carefully followed S&P CoreLogic Case-Shiller Index, home prices in America rose an average of 19.5% in September, compared to the same month last year. Craig J. Lazzara, managing director at S&P DJI, remarked:

Housing prices continued to show remarkable strength in September, though the pace of price increases declined slightly. The National Composite Index rose 19.5% from year-ago levels, with the 10- and 20-City Composites up 17.8% and 19.1%, respectively.

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Real estate research firm CoreLogic looked at national, state and metro prices for October in its U.S. Home Price Insights. This report’s conclusion about national prices was similar to the Case-Shiller Index September number. CoreLogic showed national prices, which include distressed sales, were up 18% in October compared to the same month last year.

Frank Martell, president and CEO of CoreLogic, remarked:

New household formation, investor purchases and pandemic-related factors driving demand for the limited supply of available for-sale homes continues to propel the upward spiral of U.S. home prices. However, we expect home price growth to moderate over the near term as many buyers take a break for the holidays.

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The price increases by city varied widely, as they did by state. The large metropolitan area with the highest home price increase was Phoenix, where it was up 30.5% year over year. Among the top 10 metros, the state with the lowest increase rate was Chicago, where it was only 8.8% higher.

Among states, the one with the highest home price increase in October was Arizona, up 28.8%.

The reason for price jumps in Arizona and other inland states likely is people migrating from large coastal cities like New York, San Francisco and Los Angeles, which have expensive real estate and high living costs. The “work from home” movement has allowed people to go to smaller cities where real estate prices and the cost of living are lower.

These are the 10 states where home prices are rising fastest:

Arizona (28.8%)
Idaho (28.7%)
Utah (24.5%)
Florida (24.4%)
Nevada (24.2%)
Montana (24.2%)
Tennessee (23.6%)
Vermont (21.6%)
North Carolina (21.1%)
Washington (20.08%)

Click here to see which are the most expensive cities to buy a home in.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.