Home prices

Remote workers and young families fleeing coastal cities for the Sun Belt during the pandemic spurred double-digit increases in housing costs and squeezed supply.

But Boise and Austin homebuyers pay the biggest premiums, according to a ranking of the top overvalued markets.

A measure of home prices in 20 U.S. cities jumped 18.3%, down from 18.5% in October, the S&P CoreLogic Case-Shiller index showed Tuesday. It marked the fourth straight month that home-price appreciation has cooled off ever so slightly.

In October, those factors outweighed a smaller rise in annual wage growth, and the gap will keep widening, according to a new First American Real House Price Index report.

Economists at Realtor.com and Redfin predict that across the country, rents will grow about 7% in 2022, higher than the predicted 3% growth in median home listing prices.

First-time buyers comprised just 26% of November transactions, down from 32% a year ago and matching the lowest share since 2014, the National Association of Realtors report showed.

“Rent of shelter” — a category that makes up a third of the CPI basket of goods and services prices — is up 3.9% from November 2020. That’s the most in 14 years but still pales in comparison to many private-sector metrics.

Sales are on track to exceed 6 million this year, which would be the strongest since 2006.

Only eight states experienced annual appreciation viewed as sustainable, according to Fitch Ratings.