What do you get when there is little inventory of homes for sale and The Federal Reserve pumping money into the economy like the great Chicago fire?
(Bloomberg) — Home prices in 20 U.S. cities surged in December, with low mortgage rates fueling the housing market
The S&P CoreLogic Case-Shiller index of property values climbed 10.1% from a year earlier, beating the median estimate of 9.9% in a Bloomberg survey of economists. It followed a 9.2% gain in November and was the biggest jump since 2014.
Phoenix, San Diego and Seattle posted the biggest gains in prices. Nationally, the Case-Shiller index jumped 10.4% in December, also the biggest surge since 2014.
Historically low mortgage rates have fueled a pandemic housing rally, with scant inventory of homes to buy helping to boost prices.
Not to mention The Federal Reserve pumping money (M1) into the economy at a rate 69.7% YoY.
Where are home prices exploding in growth? EVERYWHERE! Even Cleveland is growing at 11.50% YoY.