11 US cities where house prices have risen more than 20% in one year
The housing market is getting hotter, especially in parts of the United States known for hot weather. Home prices in the United States rose 19.2% on an annual basis in January, according to the S&P CoreLogic Case-Shiller Index, and prices rose much more in Sunbelt cities like Phoenix and Tampa.
The record price growth is due to a surge in demand for homes over the past two years, combined with a severe shortage of inventory. Rising mortgage rates only compound the market mismatch: in recent months, would-be buyers have been rushing to lock in mortgages before rates rise even further. Rising mortgage rates also mean potential sellers are more likely to stay put rather than trade in for a new home at a higher rate than their current mortgage.